India pins growth hopes on Trump keeping crude prices low
By Nikunj Ohri and Manoj Kumar
NEW DELHI, Nov 29 (Reuters) -India hopes that the incoming administration of U.S. President-elect Donald Trump could help keep global crude oil prices low, which would reduce the South Asian country's import bill and support its faltering economic growth.
Analysts including those at Citi Bank predict that President Trump's second term could put downward pressure on oil prices through 2025, driven by potential trade tariffs and increased oil supply.
"We believe one of the possible benefits of the new U.S. administration taking office in 2025 will be continued low energy prices," said V. Anantha Nageswaran, India's chief economic adviser, at a press conference on Friday following the release of quarterly GDP data.
He added that low crude oil prices would be a "very important ingredient" for India's growth prospects, while higher prices could hinder growth.
India's economy expanded at a seven-quarter low rate of 5.4% year-on-year in July-September, weighed down by slower manufacturing growth.
Officials view low global crude oil prices as a positive factor, however, given India's reliance on oil imports for over 80% of its energy needs.
Crude oil imports make up nearly a third of India's total annual merchandise imports.
As the world's third-largest oil importer, India would benefit from lower oil prices.
Oil prices fell on Friday, heading for a weekly drop of more than 3%, amid reduced concerns over supply risks from the Israel-Hezbollah conflict and expectations of increased supply in 2025, even as OPEC+ is likely to extend output cuts.
Reporting by Nikunj Ohri and Manoj Kumar; Editing by Hugh Lawson
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