When dark clouds bring hope for prosperity in India

Crude oil prices have fallen, saving the government billions and enriching oil refiners. And out in the rural areas, farmers are expecting a big harvest.

Published Wed, Sep 9, 2020 · 09:50 PM

India

THE metaphors for optimism seem to be falling out of India's darkening sky: The government has received a windfall from low crude oil prices. The heaven-sent crash in oil prices is also a boon for the profits of Indian oil refiners, and good monsoon rainfall is signalling a rural-sector recovery.

During the severe economic crisis wrought by the Covid-19 pandemic, all the standard development paradigms have been dusted off and given a new spin: India must develop as a new global manufacturing hub - an alternate to China - and it must build mega economic zones.

And, surprise, surprise: In welcome news to global manufacturers thinking of setting up units in India, Indian exports are showing signs of rising. The vigour shown of late in exports is replacing the pessimism generated by a 23 per cent contraction in economic growth in the first quarte…