India's Reliance on Imported Energy Threatens Long-Term Recovery

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India`s Reliance on Imported Energy Threatens Long-Term Recovery
In this article, the author discusses how India`s long-term recovery is being threatened by the country`s high-energy imports. According to economists and business leaders, India`s biggest financial problem is not the forth-coming change in US monetary policy. Rather its problem emanates from the continued dependence on imported energy. For instance, the current statistics have revealed that India imported 82% of its oil in the last financial year.
These heavy imports have contributed to the current account deficit that worries investors. They also put India at a state of high vulnerability to price spikes induced by the current civil war in Syria and other events in Middle East. Since there are no hopes of India decreasing its reliance on imported energy, it has been forecasted that by the year 2031, oil imports will grow by 10%. Currently, India has been ranked as the fourth bigges...