India will import crude oil from Iran to counterbalance any supply disruptions arising from imminent strikes by the US on Syria. The country has ruled out any considerable impact on IndiaÂ’s crude oil import supply in the event of US strikes on Syria. Prices of oil in the global markets have been hiked with the reports of imminent US strikes on Syria.
The development is resulting in further pressure on IndiaÂ’s economy, which is already battling a high current account deficit (CAD). CAD is the difference between dollar inflows and outflows.
India imports 80 per cent of its oil requirements, crude is a major determining factor for CAD. In case of imports from Iran, the payment is done in the Indian rupee.