Falling crude oil prices could give India a welcome boost, says SBI
Crude oil prices are dropping fast, and that's good news for India's economy.
Recent reports put the Indian crude basket at $62.20 per barrel, with forecasts indicating further declines by mid-2026.
SBI Research expects it to slide even further by mid-2026.
Global trends: Cheaper oil ahead
Worldwide, oil prices are on the decline too.
US and global forecasts see Brent crude averaging around $55 in early 2026, with some predictions putting Indian basket prices near $52 by mid-2026.
This trend could have a big impact on India's energy costs.
What this means for inflation and growth
Cheaper oil is likely to help keep inflation in check—SBI estimates it could push consumer price inflation below 3.4% next year—and give a small but real bump to GDP growth thanks to lower energy bills.
Rupee gains and smaller import bills
Lower oil prices might also make the rupee stronger (potentially up 3%), which means India could spend less on importing fuel—a win for one of the world's biggest energy buyers.