The general perception in the media is that India is at the mercy of Oil Producing and Exporting Countries (OPEC) and therefore, a rally in fuel prices often triggers all sorts of manic responses in India. For example, when crude-oil prices rose by 47 per cent in the first half of this calendar year (courtesy Russia's attack on Ukraine), the Nifty corrected by 10 per cent.
The real story of India's energy consumption is actually very different from the popular picture. Firstly, whilst India's energy intensity, i.e., total power consumption in India divided by GDP, is significantly higher than that of the USA, China, and Japan, it has improved significantly over the past decade. Specifically, India's energy intensity has fallen at 1.3 per cent per annum over the past decade. Even more encouragingly, as is evident from the chart Energy intensity of the Big 4 economies, there is enormous room for the country to raise its game on this front Japan and the USA use one-third as much energy as India for every of $1 of GDP generated and both of these countries and China have improved their energy intensity far more rapidly than India over the past decade. (Japan is the most efficient user of energy amongst the Big 4 economies. To understand how Japan got there, see our blog dated May 28 2022, https://bit.ly/3ETOrqU.)
Economic implications of improved efficiency in energy usage
Esta historia es de la edición November 2022 de Wealth Insight.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición November 2022 de Wealth Insight.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Bad ideas, F&O trading and the market
Find out the mindset required to find success in F&O trading
Licence Raj Redux?
The import policy changes might take us back to the days of License Raj
How to do magic
Getting great equity returns sustainably only looks like magic, it actually isn't
Data protection and cyber security
The increasing need for cyber security is opening up investment opportunities
"Buying is dependent on pricing but not on timing"
Insights of a fund manager at PPFAS Mutual Fund
Pro vs Amateur
Can amateur stock investors be better than pros? Yes! Here's how
The dimming of Brightcom
Shedding light on irregularities at the Brightcom Group
First tryst with profitability
Find out if food aggregators have found a cure to their loss-making curse
Have We Crossed The Peak Of Inflation?
Find out if the present macro scenario calls for tweaking your portfolio strategy
Tomatonomics
The humour, the stories and what could have been done about tomato inflation