Indian economy to incur additional $70bn burden in FY23 on rising crude prices

Indian economy is expected to incur an additional $70 billion burden (or 1.9 per cent of the country's GDP) in FY23 as compared to the current fiscal at an average crude price of $120 per barrel, said brokerage house Kotak Securities.

Steep crude prices will pose stiff challenges in the form of higher current account deficit, higher inflation, and lower growth, it said.

Ongoing hostilities between Russia and Ukraine as well as lack of fresh supplies pushed crude oil price to a 14-year high of $130 per barrel.

"The additional cost will be borne by the government in the form of lower excise revenues and higher Minimum Support Prices, households in