Ajay Bagga: Every $10 Drop in Crude Adds 0.1% to India's GDP

Market veteran Ajay Bagga weighs in on the positive impact of falling crude oil prices on India's economy. He highlights that every $10 drop in oil can boost GDP by 0.1% and reduce inflation by 0.25%, provided the benefit is passed on. While the current government maintains high prices, Bagga points out this helps manage the fiscal deficit and encourages a shift toward renewables like solar and electrification—key pillars of India’s long-term energy strategy. Despite higher consumption, India’s GDP intensity of oil is falling, signaling stronger macro stability.