The Good Days Are Over: The Indian Economy has an Oil Problem
When Prime Minister Narendra Modi assumed office in 2014, the price of crude oil was an astronomical $106.85 per barrel. To his great fortune, in a short period of 15 months, the price would fall to an all-time low of $28.08 per barrel, with India’s import bill dropping a little over $75 billion between 2013–2014 and 2016–2017. Capitalising on this bonanza, the government would continue to impose an excise duty and VAT on petrol and diesel to further boost its revenues. Unfortunately, the government’s days of luck might have run out.