Oil shock: Economy will suffer, but less reason to worry than in the past

The fear now is that consumers will take longer to come out of their shell, growth will moderate and full recovery from the effects of the pandemic will be stretched out even longer, writes T N Ninan

War is never good news, nor are rising oil prices for an economy that imports about 85 per cent of its needs. With crude oil prices crossing $100 per barrel after more than seven years, an oil shock is on its way. A gas shock too, for close to half the natural gas that is consumed in the country is imported. Coal also comes into the reckoning, for (as with oil) India is its third-largest importer. Since petrol and diesel prices have not been raised since November, while crude oil prices have surged by 25 per cent in just the