The oil glut is having serious economic effects on US and European markets. But several emerging market economies such as India are seeing benefits. But a positive effect is being felt in India. Most of India’s economy is pushed by consumer’ spending and lower priced petroleum products such as gasoline for transportation puts more expendable money in the hands of consumers. Consumer spending increases a demand for manufactured goods and moves industrial growth to a higher level along with employment. All these economic factors serve medium and long range planning well while Western and Asian stock markets react in jittery movements due to their long-term industrial status.
Petroleum exporting countries are seeing economic stress from low prices, whereas importers and refiners are seeing genuine benefits. Natural gas is a major source of energy and price drops are also included in the overall equation.
India may also see a wiser energy policy from the cheap oil. Over dependence on cheap imports will in the long run harm the national economy. Seeking long term arrangements and alliances with producers to guarantee a steady price and supply will enable the government to set numerous economic policies. Energy costs can also be critically examined so as to realistically set limits and guide cost of consumption.
An integrated energy policy can be developed in this time, that provides stability and accurate growth projections for the overall economy and GNP goals.
While some economies are seeing stock market fluctuations in oil stocks, India and other emerging market economies are using this price drop to build up their national financial growth and increase development and industrial growth. Economic policy and integrated energy policies will be a positive outgrowth of the gasoline surplus as well.