Economics
(a) Is crude oil essential for the development process in a country? Discuss.
(b) India has to import crude oil. What problems do you anticipate for the country looking at the above situation?
Answer
(a) Crude oil plays a pivotal role in a country’s development process. Crude oil is a primary energy source for industries, transportation, and power generation. It fuels economic activities and drives growth. Many industries rely on oil-derived products (plastics, chemicals, fertilizers). Without crude oil, industrial production would suffer.
(b) India's dependence on crude oil imports presents several challenges and potential problems. Some of them are listed below:
- Importing oil requires foreign currency. Therefore, it will impact India’s foreign reserve.
- Fluctuations in global oil prices can significantly impact India's economy. It can lead to higher inflation increasing costs for goods and services.
- Depending on a limited number of countries for oil supplies can make India vulnerable to diplomatic and political pressures.
- Increased spending on oil imports can limit the government's ability to invest in infrastructure and social programs.
Related Questions
In a study, it was found that in Tamil Nadu, 90 per cent of the people living in rural areas used a ration shop, whereas in West Bengal only 35 per cent of rural people did so. Where would people did better off and why?
(a) Why groundwater is overused?
(b) Can there be development without overuse?
Development of a country can generally be determined by
- its per capita income
- its average literacy level
- health status of its people
- all the above
Which of the following neighbouring countries has better performance in terms of human development than India?
- Bangladesh
- Sri Lanka
- Nepal
- Pakistan