The Organization of the Petroleum Exporting Countries (OPEC) in its latest monthly World Oil Demand report has said that India's oil demand is expected to rise by the fastest pace globally this year and the next year, despite slower economic expansion. According to the report, India's oil demand is likely to rise by 3.21 per cent to 4.88 million barrels per day (mb/d) in 2019 from 4.73 mb/d in the previous year. It will further rise by 3.36 per cent to 5.05 mb/d in 2020.
On the economic growth front, OPEC noted that India has experienced significantly lower-than-expected growth rates for first half of 2019 amid ongoing structural challenges. It further added that while some pick-up in 2H19 is expected, growth rates are forecast to be lower than in past years at 6.1 per cent for 2019 and 6.7 per cent for 2020.
Besides, the Organization said that fixing India's weak growth has become the highest priority while a benign inflation outlook has given the central bank room to cut rates. OPEC also underlined that it seems India's economic slowdown could continue for the next two to three years as the economy faces serious structural reform, which will hurt consumer demand and manufacturing.