Archive · 6 Oct 2026
Global Shocks Put India’s Middle Class and Economy Under Pressure
India buys most of the oil it uses from other countries.
When oil gets more expensive, moving goods costs more, and prices can rise for families.
The article says oil prices stayed above $100 a barrel for nearly a month.
India’s bill for imported oil also increased, while Russian oil was no longer as cheap as before.
Inflation rose from April to August, though it was still within the range described as acceptable by the Reserve Bank of India.
The article says problems overseas, including higher US bond yields and protectionist policies, can also put pressure on India’s economy.
It argues that the middle class has been struggling with debt and frozen salaries.
The author says companies should share more of their profits with stakeholders to help the economy recover.
Crude oil prices stayed above $100 a barrel for nearly a month, raising concerns for India, which imports close to 90% of its crude.
India’s crude import bill rose 48.4% to $74.8 billion from April to August, while discounted Russian oil became less available.
Inflation rose from 3.48% in April to 4.82% in August, although it remained within the RBI’s stated target band.
The article says rising US Treasury yields and protectionist policies could add pressure on the rupee, current account, interest rates and prices.
It argues that reviving the middle class and directing company profits to stakeholders are important to strengthening the economy.
- Who
- India, its policymakers, the Reserve Bank of India, companies and the middle class.
- What
- The article warns that external economic shocks are increasing pressure on India and calls for measures to revitalise the middle class.
- When
- Crude prices were above $100 a barrel for nearly a month; inflation figures cited run from April to August. The RBI Monetary Policy Committee meeting was underway when the article was written.
- Where
- India, amid global oil and financial-market pressures.
- Why
- India relies heavily on imported crude, while higher oil prices and other overseas pressures can raise transport costs, inflation and financial strain.
Case for revitalising the middle class
Limits of domestic policy amid global shocks
How to strengthen the economy
Case for revitalising the middle class
The article argues that the middle class is India’s real economic strength and that company profits should flow to direct and indirect stakeholders.
Limits of domestic policy amid global shocks
It notes that rising company profits without reinvestment or wider distribution may not revive the economy; it does not present a named opposing advocate for this view.
What policymakers can control
Case for revitalising the middle class
The government should take steps to revitalise the Indian economy and support the middle class.
Limits of domestic policy amid global shocks
The article says domestic authorities have little control over crude prices, geopolitical conflicts and global trade; raising the repo rate may address the yield differential but cannot resolve those external pressures.
- Crude import dependence
- Close to 90% of India’s crude requirement is imported.
- Crude price
- Above $100 a barrel for nearly one month, according to the article.
- Crude import bill
- $74.8 billion during April-August, up 48.4%.
- Inflation, April
- 3.48%.
- Inflation, August
- 4.82%.
- RBI inflation target
- 4%, with an acceptable range of plus or minus 200 basis points.
- Russian crude pricing
- Recently sold to Indian refiners around parity with, and sometimes at a premium to, Brent.