2026 · Q46
India's reliance on imported energy exposes it to geopolitical supply shocks. In this context, what is the most likely short-term impact of a major disruption in crude oil imports?
General KnowledgeIndian Economy
- ADecrease in inflation
- BStrengthening of the rupee
- CHigher input costs and inflation pressure
- DIncrease in exports
Explanation
India imports roughly 85% of its crude oil requirements, so a major disruption in crude imports raises fuel, transport and fertiliser input costs, creating inflationary pressure across the economy in the short term. It would not lower inflation, strengthen the rupee or directly raise exports. The answer is (C).