Note ban impact: India oil demand in Q1 grew only 0.4% versus China's 2.2%

Earlier, expectation for 2017 was 6-7% growth in Indian demand, versus about 2% for China

Indian oil demand, says a report from Platts Analytics, rose a marginal 0.4 per cent during the first quarter (Q1) of 2017, against 2.2 per cent in China. Demonetisation is given as the key reason. 

The earlier expectation for 2017 was six to seven per cent growth in Indian demand, versus about two per cent for China.

“The sudden announcement by the Modi government of the demonetisation exercise late last year has immobilised Indian oil demand, impacting industrial and consumer sectors, which suffered from the immediate removal of over 80 per cent of the existing currency,” the report said. 

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