DMPQ:US has decided to do away with relaxation on Iran’s sanctions. How it is going to affect India?

Recently Trump administration decided to do away with relaxation to major importers of Iran’s oil resource. US govt. has decided to be more proactive and want more imposition of sanctions on Iran to derail Iranian economy and eventually dis courage nuclear activity and funding to terrorist groups. This step is going to affect India as :

  1. India is major importer of oil from Iran. About 10% of oil import is from Iran.
  2. It will increase pressure on Fiscal deficit and current account deficit.
  3. Pressure on rupee dollar exchange rate.
  4. Commodity price increase.
  5. Reduction in disposable income of consumer.
  6. Spillover effect on monetary policy, consumption and investment
  7. As a rule of the thumb, an increase of $10 per barrel in crude prices will lead to an increase of about Rs17,000 crore (or $2.5 billion at an exchange rate of 67/$) in fuel subsidies, equivalent to 0.09% of GDP.
  8. High oil prices will force government to cut taxes to ensure the oil cost is bearable. It means revenue loss. a cut of Re1 in excise duty for both petrol and diesel will lead to an annual revenue loss of Rs12,000-13,000 crore (or 0.065% of GDP).
Final Destination for Haryana PSC Notes and Tests, Exclusive coverage of HPSC Prelims and Mains Syllabus, Dedicated Staff and guidence for HPSC Exams HPSC Notes brings Prelims and Mains programs for HPSC Prelims and HPSC Mains Exam preparation. Various Programs initiated by HPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Hope we have satisfied your need for HPSC Prelims and Mains Preparation

Kindly review us to serve even better

HPSC Mains Test Series 2020

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes

Mains Printed Notes (With COD)

HPSC Prelims Test Series 2020

24 Quality mock tests and GS Prelims Notes

Prelims Test Series and Notes

Prelims Printed Notes (With COD)

[jetpack_subscription_form title=”Subscribe to HPSC Notes” subscribe_text=”Never Miss any HPSC important update!” subscribe_button=”Sign Me Up” show_subscribers_total=”1″]

error: Content is protected !!