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Modi Has an Oil Problem – and Saudi Arabia Is Set to Make It Worse

Saket Sundria, Anirban Nag
Modi Has an Oil Problem – and Saudi Arabia Is Set to Make It Worse

India’s Prime Minister Narendra Modi has an oil problem. Modi’s government made the most of cheap oil by substituting any fall in prices with taxes that kept retail fuel rates unchanged for consumers and boosted the federal revenue. “There is a strong case for the central government to take another excise duty cut, and ask state governments to reduce value added tax,” Anil Sharma and Ravi Adukia, analysts at Nomura Financial Advisory and Securities India Pvt.