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General Forum: Money Matters | | impact of war on the indian economy1 | |
| Dear Mr. Yugendhar
MY opinion for the two questions you have raised are ...
First we cannot increase our domestic production more than the present level (unless some huge oil reserves is discovered)
Secondly
India and other oil importing countries can never benefit from war. Only America and other allies of America will benefit. The profit on increase in oil prices will go to American MNC’ only. In the middle east extraction and trading of oil in the hands of seven companies (Shell…) all of which are American. If we look at the data of 1991 Gulf war the increase in crude oil price resulted in increase in net profit for oil companies around $60bn. Moreover in the name of reconstruction of Iraq, America can export its products and in consideration it can take crude oil from Iraq. America already in a position to dictate the terms, therefore it can charge any price for its exports. Iraq will not have any other option except to accept.
So the increase in price of crude will not adversely effect American economy, indeed boost the growth of many industries. We with the same level of imports at a higher rates without additional exports/ able to increase the prices of present exports to such level to compensate the increase in crude oil price will only suffer.
Regards
Posted by: Mr. Madhu Seshanand At: 7, Apr 2003 5:54:17 PM IST
Dear Mr. Yugendhar
MY opinion for the two questions you have raised are ...
First we cannot increase our domestic production more than the present level (unless some huge oil reserves is discovered)
Secondly
India and other oil importing countries can never benefit from war. Only America and other allies of America will benefit. The profit on increase in oil prices will go to American MNC’ only. In the middle east extraction and trading of oil in the hands of seven companies (Shell…) all of which are American. If we look at the data of 1991 Gulf war the increase in crude oil price resulted in increase in net profit for oil companies around $60bn. Moreover in the name of reconstruction of Iraq, America can export its products and in consideration it can take crude oil from Iraq. America already in a position to dictate the terms, therefore it can charge any price for its exports. Iraq will not have any other option except to accept.
So the increase in price of crude will not adversely effect American economy, indeed boost the growth of many industries. We with the same level of imports at a higher rates without additional exports/ able to increase the prices of present exports to such level to compensate the increase in crude oil price will only suffer.
Regards
Posted by: Mr. Madhu Seshanand At: 7, Apr 2003 5:42:44 PM IST
Dear Mr. Yugendhar
MY opinion for the two questions you have raised are ...
First we cannot increase our domestic production more than the present level (unless some huge oil reserves is discovered)
Secondly
India and other oil importing countries can never benefit from war. Only America and other allies of America will benefit. The profit on increase in oil prices will go to American MNC’ only. In the middle east extraction and trading of oil in the hands of seven companies (Shell…) all of which are American. If we look at the data of 1991 Gulf war the increase in crude oil price resulted in increase in net profit for oil companies around $60bn. Moreover in the name of reconstruction of Iraq, America can export its products and in consideration it can take crude oil from Iraq. America already in a position to dictate the terms, therefore it can charge any price for its exports. Iraq will not have any other option except to accept.
So the increase in price of crude will not adversely effect American economy, indeed boost the growth of many industries. We with the same level of imports at a higher rates without additional exports/ able to increase the prices of present exports to such level to compensate the increase in crude oil price will only suffer.
Regards
Posted by: Mr. Madhu Seshanand At: 7, Apr 2003 5:42:04 PM IST
Now the war may not last for more days.The cost of the war always borne by the oil importing countries like India. The cost of gulf of war in 1991 as reported by America is 40bn dollars. But WHO PaID THIS?
More than 70% paid by arab countries(kuwait, etc) and only upto 10% paid by U.S.
The arab countries were transfered the war cost by increaing the oil price.
The cost of barrel before war is $15/-(approx)
after war the cost rose to $42/-
which is more than sufficient to cover war expenses, indeed due to war american companies in gulf made extra profit.
Now again the cost of war will be borne by us.
It seems to me that the cost oil will raise. Otherwise how U.S. can recover its war cost?
Therefore Mr. Kiran I agree with you that oil prices will raise. LET US DISCUSS THE IMPaCT ON INDIA
REGADS
Posted by: Mr. Madhu Seshanand At: 7, Apr 2003 1:03:28 PM IST
yes Mr.Madhu pls let us know the situation.
Posted by: Jonnalagadda Jonnalagadda At: 5, Apr 2003 4:18:25 PM IST
hope oil rates may raise if US captures Iraq.
Posted by: Jonnalagadda Jonnalagadda At: 5, Apr 2003 2:54:03 PM IST
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