International capital market valuations of equity and debt in oil-importing countries
would be revised downwards and those in oil-exporting countries upwards.
Importing countries creditworthiness [ Decrease ] leads to large current account deficits.
Upward pressure on interest rates due to tighter monetary policies for inflation
Rise in value of USD. Stronger dollar <-> greater economic damage to developing countries.
Higher subsidies pressure government budgets, increasing political and social tensions.
Impact of Oil Prices on Global Economy : Advanced Countries 10
Trends In Import Dependency of India : Oil Import Dependency 11 Expected to rise to 94% levels by 2030 !
Share of Future Energy Supply In India : Oil Intensity 12 Share of Future Energy Supply In India (% ) Source: India – Hydrocarbon Vision 2025 –Ministry of Petroleum and Natural Gas, India Upto 2011 from Technical Note on Energy, Planning Commission, Govt. of India (1998-99). Beyond this period the figures have been extrapolated.
Impact of Oil Prices on Indian Economy When Oil Prices Move Up :