oppn parties OPEC's Move Will Lead To Difficulties For India

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  • Allahabad HC said that the UP Police is acting as law unto themselves as they detained a person unlawfully even before his arrest
  • Kolkata witnesses traffic snarls on the first day of the Durga Puja festival as revellers start pnadal-hopping
  • Neha Bora was subsequently released and Dipke is to appear before a magistrate today at noon
  • Delhi Police detained Cockroach Janta Party founder Abhijeet Dipke, Neha Bora of AISA, student leaders and supporters ahead of a rally in Connaught Place demanding Chief Election Commissioner Gyanesh Kumar's resignation. The protest followed the detention and jailing of two CJP leaders earlier in the week over demonstrations at Jantar Mantar
  • The Reserve Bank of India is considering further monetary tightening to counter capital outflows and increase the cost of betting against the rupee, according to bankers and analysts cited by Reuters. The measures follow recent rate increases and steps to drain liquidity as pressure on the currency and inflation concerns persist
  • India directed oil marketing companies to stop diverting sugar-based feedstocks for ethanol production in the 2026–27 supply year, according to a new tender issued on Friday. The companies have invited bids for 11 billion litres of ethanol made from alternatives including corn and broken rice, amid concerns about domestic sugar supplies and prices
  • Finance Minister Nirmala Sitharaman said India's trade imbalance with China was growing sharply and attributed the problem partly to restrictions on Indian goods and services entering the Chinese market. China subsequently said it was ready to work with India to address mutual economic and trade concerns; India's trade deficit with China reached $69 billion in the first half of FY2026–27, up 27% year-on-year
  • Indian equity benchmarks extended their recovery on Friday, with the Sensex rising 413.66 points to close at 74,729.27 and the Nifty 50 gaining 148.80 points to settle at 23,146.15. Information technology shares, including Tech Mahindra, Infosys and TCS, helped lift the indices
  • India defeated Zimbabwe by four wickets in the opening women's T20 International in Raipur, taking a 1–0 lead in the three-match series. Deepti Sharma and Niki Prasad combined in an 82-run stand after India's top order collapsed, helping the hosts chase down Zimbabwe's total of 114 for five
  • Indian wrestler Komal won bronze in the women's 59 kg category at the Under-23 World Wrestling Championships in Las Vegas, defeating Kazakhstan's Viktoriia Khusainova 7–2. Fellow Indian Amruta Pujari advanced to the women's 72 kg final after recording two pinfall victories
  • Indian shuttler Jagsher Singh Khangurra secured a bronze medal at the BWF World Junior Badminton Championships in Cairo
  • The Supreme Court of India upheld the Bombay High Court's decision quashing the 2020 write-off of ₹8,415 crore in additional tier-1 bonds issued by Yes Bank (Yes Bank). The court ruled that the bank's administrator lacked the authority to extinguish the bonds under the final reconstruction scheme, strengthening bondholders' claims
  • The Supreme Court issued notices to the Election Commission of India, Delhi Police and opposition leaders, including Rahul Gandhi and Akhilesh Yadav, in separate petitions concerning electoral-roll revision and protests held in Delhi on October 10–12. The court also directed the preservation of CCTV footage linked to allegations of police excesses
  • The Supreme Court ruled that a person converting from Hinduism to Islam cannot automatically claim backward-class reservation benefits in the new religious community solely on the basis of their previous caste status. The judgment upheld the Madras High Court's decision striking down a 2024 Tamil Nadu government order that permitted such certification for specified communities
  • The Election Commission of India ordered a Special Summary Revision of electoral rolls in 14 states and three Union Territories, using January 1, 2027, as the qualifying date for voter eligibility. The draft rolls are scheduled for publication on November 12, claims and objections will be accepted until December 11, and the final rolls are due on January 4, 2027
Delhi HC refuses to ban CJP's Tiranga rally at Central Park in Connaught Place today /////// Police says will control and regulate it /////// NDMC closes the park for the public on Friday and Saturday
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OPEC's Move Will Lead To Difficulties For India

By Linus Garg
First publised on 2022-10-07 06:39:39

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

As the US Fed tightens policy rates and the dollar gains against most currencies in the world, India's foreign exchange reserves dip and inflation shows little sign of easing as the festive season shopping has created renewed demand for product and services, comes the bad news that the Organization of Petroleum Exporting Countries (OPEC) and its allies will cut production by 2 million barrels a day in order to shore up falling prices. This means that global oil supply will reduce by 2%. Statements by OPEC officials suggest that the organization wants the price to rule at $90 per barrel from the $82 per barrel they were ruling in the last week of September after seeing highs of over $100 per barrel in June. The US media has termed OPEC's move as a failure of President Joe Biden's so-called fist-bump diplomacy with the Saudis and highlights the difficulty the US will face in managing the economy in times of a global recession risk as crude prices remain elevated. 

For India, especially, this is extremely bad news. The country imports more than 80 percent of its requirement and is under immense pressure as the rupee is falling to new lows against the dollar. Further, inflation is still very high. If India's crude basket once again rises to over $100 per barrel, there will be a cascading effect on prices will be upwardly revised and the chances of runaway inflation will loom large. India's crude import bill had been declining after June mainly due to lower prices and discounted imports from Russia. But Russian imports are a small percentage of the total requirement and if prices rise beyond $90 per barrel, as they did after the OPEC announcement, India will feel the pinch as there will be huge pressure on the current account deficit.

Although reports suggest that the US will ease sanctions on Venezuela and allow it to export oil to the US and European markets, that will not be enough to cool global crude prices. With prices expected to prevail over $90 per barrel in the medium term, India will have to battle inflationary pressures and the RBI will have to keep raising key interest rates. That, of course, will have an adverse effect on growth. 

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