Oil consumption in India is expected to be 7-8 per cent this year, outpacing China’s demand growth for the third consecutive year, as impact of demonetisation is likely to be short-lived, according to Platts.
LPG and transport fuels demand will rise, while new petrochemical projects would be a boon for naphtha demand.
ĆāThe dramatic rise in IndiaĆās oil demand shows no signs of faltering; the country will remain a driver of Asian growth in 2017,Ćā Platts Analytics said in a note.
The cash crunch following demonetisation is expected to Ćātemporarily dampen the country’s appetite for oil products in the first quarter, or maybe a little longer,Ćā it said.
ĆāBut gains in oil demand that the country is set to achieve from the ĆāMake in IndiaĆā initiative Ćā which aims to raise the share of manufacturing in GDP over the next few years Ćā will more than offset the negative effects of demonetisation,Ćā Platts quoted analysts as saying.
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