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?”


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