Mains Answer Writing - 16 Jul, 2026

GS3

Economy

15 marks

"India's economic resilience remains closely tied to global crude oil prices despite progress in energy diversification." Examine the sensitivity of the Indian economy to fluctuations in international crude oil prices.

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Tips for your answer

Cover all macroeconomic channels. Link oil prices with CAD, inflation, fiscal deficit, exchange rate and economic growth, not just fuel prices.
Remember value addition like 85% crude import dependence, Strategic Petroleum Reserve (SPR), National Green Hydrogen Mission, E20 Ethanol Blending, and National Biofuel Policy.
Avoid presenting India as entirely vulnerable. Balance the answer by highlighting diversification of imports, renewable energy expansion and macroeconomic resilience measures.

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