Indians and many experts spent much of the last few months worrying that an oil shock would become the country’s next economic headache. However, it is now about wondering whether India has stumbled into an oil dividend.
Barely three weeks after the conflict in West Asia sent crude prices soaring and revived fears of higher inflation, a weaker rupee and tighter monetary policy, the sharp retreat in oil has prompted economists to redraw the outlook for Asia's third-largest economy. DBS Bank has raised India's growth forecast, reversed its view on the country's external balances and abandoned expectations of an interest-rate hike this financial year after slashing its oil-price assumptions.
