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Can rising crude oil prices slow down India's economic growth?

Former IMF Deputy Managing Director Gita Gopinath has warned that if oil prices remain elevated for an extended period, India's GDP growth could fall from the IMF's projected 6.5% to around 6%.

In this video, we break down:

How the Iran-US conflict is impacting global oil markets
Why crude oil prices may stay higher for longer
The potential impact on India's GDP growth
What it means for inflation, the rupee, and the current account deficit
RBI's possible stance on interest rates and monetary policy
Whether rising oil prices could eventually affect your EMI payments

India is one of the world's fastest-growing major economies, but prolonged geopolitical tensions and elevated energy costs could create new challenges for growth and inflation. Watch the full analysis to understand what lies ahead for the Indian economy.



क्या Iran-US तनाव भारत की अर्थव्यवस्था पर भारी पड़ सकता है? IMF की पूर्व Deputy Managing Director Gita Gopinath ने चेतावनी दी है कि अगर कच्चे तेल की कीमतें लंबे समय तक ऊंची बनी रहती हैं, तो भारत की GDP Growth 6.5% से घटकर 6% तक आ सकती है।

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Transcript
00:00Iran US के बीच मामला सुलच भी गया तो कच्छे तेल की कीमतें जल्ब नीचे आने वाली नहीं है
00:05और भारत की GDP ग्रोथ 6.5% से फिसल कर लगभग 6% तक आ सकती है
00:11यह सब कहे कर हम आपको दरा नहीं रहे हैं बनकि IMF की पूर चीफ एकॉनमिस्ट गीता गोपिनाथ ने यह
00:17बड़ी चेताब नहीं दी है
00:19भारत दुनिया की सबसे तेजी सबड़ती बड़ी अरत्व विवस्थाओं में शामल है
00:22और IMF ने चालू वितवर्ष के लिए यानि FY27 के लिए 6.5% के विकासदर का अनुमान जताया
00:29लेकिन अब इस अनुमान पर खत्रे के बादल मंडरात दिखाई दे रहे है
00:33IMF के पूर वरिष्ट अधिकारी गीता गोपिनाथ का कहना है कि अगर तेल की कीमतों में तेजी बनी रहती है
00:39तो भारत की GDP ग्रोथ लगभग 6% से मट सकती है
01:03कि अगर ये विल्व लेश्ट ये टानुमान चैनुमान रखता़ा जटा बेश्चा का पस्थे लगभग 6% से रहे हैं
01:24आप्धिका अनुमान अधिका के आपना है
01:30But I mean, we still are not seeing very big risks play out.
01:35I mean, we're not seeing oil at reaching $120, even $140 a barrel.
01:40So that's the good news.
01:41And if that were to happen, I think the consequences for the global economy would be much more severe.
01:46In fact, China has a big part of its need.
01:49Crude oil, or oil, is a big part of the import of crude oil.
01:52In such a way, when oil is in the antarashia bazaar, it's a direct effect of the country's economy.
02:05It's a big part of the economy.
02:28It's a big part of the economy.
02:28In this situation, we have to not only import oil and oil, but also import oil and oil and oil.
02:36The current account deficit will also be added to the current account.
02:39Although the oil is added to the oil, it's also a big part of the economy.
02:45The oil is saying that in the same way, RBI is managing the whole situation.
02:51It's the right way.
02:52And listen to RBI policy on the 5 June,
03:08and what's happening in the Strait of Hormuz has consequences.
03:12Therefore, you should expect the currency to depreciate so that you get the adjustment that you need for the economy.
03:19RBI has been doing some amount of intervention to address disorderly market conditions,
03:25and that is perfectly fine to do.
03:27I think what you should avoid against is doing an intervention that keeps the currency from simply not moving at
03:34all.
03:34And that, I think, would be counterproductive because it will also make foreign investors hold off
03:40and not bring money into the country because they think the rupee is going to weaken again in the future
03:44once the intervention stops.
03:46So I think that the way it's being handled right now is appropriate.
03:50Global interest rates are already very elevated, and we are sticking to RBI again.
03:56RBI is to announce their bimonthly policy tomorrow that the new rates are to be announced.
04:00So do you see that RBI will increase their rates tomorrow?
04:05RBI is obviously trading off at this point the consequences for inflation that come with the higher oil prices
04:12and with the currency depreciation, but against what's happening in terms of economic activity.
04:17I mean, I expect that in the near term the RBI will likely be on hold,
04:22but then eventually maybe in the future, depending upon developments and what's happening with inflation, they can respond.
04:27But again, it's going on a data-dependent approach is a useful thing to do.
04:35And on the one hand, while there is some inflationary pressure, at least we're not seeing that much in consumer
04:41price inflation,
04:42also because there's not been that much pass-through of the higher oil prices into fuel prices at the pump.
04:48There's been some increase, but not that much.
04:51On the other hand, you also do have the somewhat softening of economic activity.
04:55And so therefore, maybe waiting for more data to see what's happening with inflation,
05:01what's happening with economic activity before raising rates would probably, you know, is one approach to take.
05:06.
05:07only Gita Gopinath
05:08not, but experts and analysts
05:10say that the low-takes
05:12are consumers of the people
05:14who get into their lives
05:17and the people who get into their lives
05:18or spending power
05:18which is a small amount of demand
05:21and the demand is lower
05:21and the company's lack of
05:23no-one of the people who can
05:25do this. This is why
05:27the price of the people
05:28is in the world
05:30that the government
05:31is in the world
05:32that the government
05:33is also in the world
05:36is that the economic activity will be done and will be made of speed.
05:44But if there is a long time in a long time,
05:48then the growth and the drought will increase in both the moods.
05:53So the question is,
05:54is that if the GDP will be the 6.5% of the GDP?
05:58Or will the drought of the drought and the drought?
06:17Or will the drought of the drought and the drought of the drought?
06:18What do you think about the comment box?
06:19in the Zorba Taiga.
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