Budget 2019: Oil could come to the rescue of Modi government again, predicts Economic Survey.

Oil could again come to the rescue of the Modi government in its second term as the Economic Survey has outlined that oil prices could decline in the current fiscal. 

Oil prices largely favoured the first term of the Modi government which has kept the inflation in check. 

Increasing US shale oil prodcution and weakening global demand could push the crude oil prices downwards. India, which imports around 80 per cent of its oil, benefits from low crude oil prices. 

In Modi government's first term, the government earned a windfall by taxing the oil on the back of benign international oil prices. However, it also came under criticism as the domestic prices kept on climbing because the government refused to lower the tax rate on oil at the time of rising crude oil prices.