The economic war between USA and China has impacted many countries indirectly; India's condition has become critical in trying to decide on standing by either China or USA. More than Modi, the people of the country are confused as they are the ones directly impacted by the rise in price of petrol and diesel, and they do not want themselves to be impacted by any new issues because of India's choice to support either US or China.
Ever since the economic blockade on Iran, Modi has been facing a tough time, as support to Trump means losing low cost petroleum products and this will impact the money market as well. India had imported 9 billion dollar worth petrol from Iran, after March, and then making several changes, planned to import extra 24 billion dollar worth products. Importing from Iran is advantageous as they charge lesser.
With long term debts, and the
shipping charges are also lesser. On the other end, by supporting US, it
is expected that India can get a cost cut in petroleum products, and not just
in petrol but also in Aluminium and Iron products. With the American plans to
export more hydrocarbons to India, it is to be seen what decision Modi will be
taking.
