Oil’s Fall May Greatly Assist Modi’s Economy Overhaul

If Prime Minister Narendra Modi is serious about overhauling India’s economy, 2015 may be his best chance.

Oil prices have fallen to a five-year low, inflation is easing, the current account deficit has narrowed and investors are betting the U.S. Federal Reserve won’t raise rates until June. Only two of India’s 29 states will hold an election next year, and Modi holds a majority in the lower house for the first time in three decades after his landslide election win in May.

“Very rarely do you see something like this,” Saugata Bhattacharya, a Mumbai-based economist at Axis Bank Ltd., said in an interview last week. “What more can they possibly want?”

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.