Bubbling global crude oil prices spell triple-whammy setback for India

Brent crude at $75 a barrel could lower his growth estimate for India to about 7.3 per cent from 7.5 per cent for the year through March 2019

The surge in oil prices couldn’t have come at a worse time for India.

Asia’s No. 3 economy faces a wider trade deficit, a worsening of stretched government finances, and slower economic growth if oil prices remain stubborn at the current level. That would challenge policy makers trying to strengthen the economy in time for elections next year.

“Higher global crude oil prices are net negative for the Indian economy in almost all aspects,” said Kaushik Das, chief economist at Deutsche Bank AG in Mumbai. He estimates that Brent crude at $75 a barrel could lower his growth estimate for India to