In response to Petroleum Planning and Evaluation Cell knowledge, petroleum productsconsumption in India for the June quarter rose 7.Eight% from a ceramic pall ring yr earlier. Typically, the June quarter is slower than the rest of the yr. As an example, within the June 2015 quarter, petroleum productsconsumption had increased 6.7% however for your complete fiscal 12 months 2016, it had gone up 11% from a year earlier. Going by the pattern, it’s seemingly that petroleum products consumption progress for FY17 might be better than final 12 months. What’s more, the seventh pay commission is predicted to boost consumption. That would mean extra car sales, which in flip boosts petroleum productsconsumption.
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If that occurs, then the 2016 oil demand forecast for India by the International Power Agency (IEA) may properly be on the conservative facet. IEA forecasts oil demand progress of 7.5% for 2016 (see chart).
Nonetheless, on an general basis, it might not amount to much for the Indian economic system. True, petroleum products consumption data is a number one indicator of the efficiency of an financial system. However the onerous fact is that the funding demand component of gross home product (GDP) progress has not picked up. As Neha Saraf of Nomura Financial Advisory and Securities (India) Pvt. Ltd says, there is a slender based recovery in GDP growth, led mainly by city consumption and transportation companies. But authorities capex has not picked up and non-public sector investment has been sluggish, she added.