‘God exists and is an Indian’: Kotak Mahindra AMC’s Nilesh Shah cites cheaper oil prices despite global tensions

To prove that “god exists upstairs and is an Indian”, Nilesh Shah, referred to double-digit oil prices in India despite the Israel-Hamas war, Red Sea disturbance and other geopolitical tensions. He also mentioned US Fed hints on rate cuts, and strong GDP growth rate numbers.  

“Three months ago US Fed said that rates will stay higher for longer, but God said ‘Tathastu’, and now the Fed chairman is saying that they will start cutting rates,” Nilesh Shah made a witty remark at the India Exchange Summit in Mumbai, reported CNBC-TV18. 

To strengthen his opinion of India being blessed with a ‘divine power’, Shah highlighted the uncommon trend of oil prices in India, which continued to remain in double digits. The oil price trend in India defied the anticipation of touching the “triple digits” mark due to the “Israel-Hamas war, oil production cut by Saudi Arabia and Russia, Russia-Ukraine war” and continued to remain in “double digits”, noted Shah.

While expressing his bullish stance on the Indian economy, Nilesh Shah earlier said that India will remain the fastest-growing major economy in the world, which is the function of “talent staying back in India”.

“We will remain the fastest-growing major economy in the world. This growth is the function of talent staying back in India, unlike the pre-90s when they migrated for better opportunities. We have built infrastructure at an incredible speed, almost doubling it in the last 10 years. The trinity of talent, capital and infrastructure is creating sustainable growth,” Shah told Mint’s Ram Sahgal.

At present, India relies heavily on crude oil imports with nearly 85% of its energy needs fulfilled through crude oils. This makes its inflation, current account deficit, import bill, depreciation of currency, fiscal deficit, etc affected by changes in global crude oil prices.

On April 3, the Organisation of Petroleum Exporting Countries and its allies (OPEC+) maintained the status quo of its supply policy till mid-2024. The decision led to a rise in international crude oil prices to their highest in five months.

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Published: 06 Apr 2024, 07:01 PM IST