The fall in commodity prices helped consuming nations. An oil importing nation like India benefited greatly. But, the magnitude of the fall was so stark that it threatened the very viability of production in several producer countries. The economics was gone and their economies were tottering. Countries which used to generate trade surplus and maintained stable forex reserves suddenly found themselves staring at a sharp reduction. Commodity producing nations face their worst crisis at a time when capacities have grown significantly. A rise in commodity prices to a more respectable level is now an important requirement for the fears of the global economy to recede. We don’t know if that can happen so easily. But, for a moment let us think of how it hurts India. In a direct sense, low commodity prices are great news to India. We benefit in many ways. That we benefit severally will start showing up and help us to build an improved investment climate. The world will definitely want to invest in India. Indians surely can’t be left far behind.
“I don’t like stress and prefer to avoid it, I never focus too much on market news and economic data. They always worry investors.”- Walter Schloss.