Explainer: Why rising oil prices are concerning for India
Tensions near the Strait of Hormuz are making global oil prices jump, and that's not great news for India.
Since we get about half our crude oil from this region, any price spike can hit our wallets and even slow down the country's economic growth.
As Vandana Bharti from SMC Global Securities puts it, every $10 hike in crude oil prices hurts India's GDP by about 0.5%, which is a pretty big deal.
What can India do to tackle the situation?
With oil prices climbing from $69 to nearly $78 per barrel, there's extra pressure on inflation and the rupee.
To manage these risks, India might buy more discounted crude from Russia and diversify where we get our energy.
Bharti also points out that investing in renewables is becoming urgent—it's a smart way to avoid getting caught off guard by unpredictable oil markets in the future.