Iran war: Lessons from past oil shocks India can use
India can draw lessons from past oil shocks to manage the current crisis triggered by the Iran-US conflict. The country's economy has been impacted by various oil crises in the past, including the 1973 and 1979 oil crises, the Gulf War, and the Russia-Ukraine war.
India's economy has faced significant challenges due to various oil crises in the past. The 1990 Gulf War led to a severe balance of payments crisis, with foreign exchange reserves falling to $1-1.2 billion. The 2008 financial crisis also impacted India, with inflation rising to 12.9% and GDP growth falling to 6.7%. The government responded by increasing fuel prices and cutting customs duties on oil. The Russia-Ukraine war has also affected India's energy imports, with the country capitalizing on discounted Russian oil. The current Iran-US conflict has led to a blockade of Iranian ports, affecting global energy supplies. India can learn from its past experiences to manage the current crisis.
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