Average crude oil prices will be around USD 45 for the next half of this year and this, coupled with positive macro fundamentals, could translate into better growth numbers for the country, says a report. According to SBI Research’s Ecowrap report, the easing of crude oil prices will have positive effect not only on inflation but also on GDP growth.
“Past trends indicate that low oil prices lift global growth (and subsequently domestic growth) significantly,” the report said. During 2003-2006, when average Brent crude was USD 47 per barrel, the global GDP growth was 5 per cent (average) and India’s average growth was at 8.6 per cent, it said.