If the Covid-19 pandemic has kept the world and India on the edge for last four months bringing everything to an unparalleled halt and effecting gigantic economic losses, a thin streak of hope, anyway, has emerged for India. The sudden and almost rare opportunity, a blend of a duo that is now available to grab has its roots in the continuing fall of international crude oil prices making it cheaper like never before and a window has also opened for pitchforking India as an attractive manufacturing hub since China’s reputation has taken a severe beating after coronavirus pandemic.

Coming to the great fall of oil prices, it can be said that it will be quite an effort to cite instances of such unthinkable per-barrel reduction and prices hovering around negative zones is also extremely rare. But this has been true over last two weeks and the direct cause that can be attributed is the total or almost-total economic inactivity all across the US and Europe. To explain it lucidly, it’s nothing but a mismatch of the demand-supply concept which is core to the subject of economics. When it's a usual feature that the demand factor so often surpass the supply side resulting in upswing of prices, a rare opposite has happened this time. Oil production has maintained the steady mode of churning out barrels, whereas consumption has been almost nil, making it a headache altogether for the oil producing countries where to store.

The topic now under perusal by policy experts is how to leverage this sudden ‘windfall’ in India’s favour. The hard facts about the current state of national economy needs no further mentioning and it can only be said that more difficult days are ahead. Oil has also been the direct determinant of health of the economy as dependency on imports is unquestionable. Figures tell that India has been for decades world’s third-largest energy consumer and in 2018, been the third-largest oil importer. It’s a huge drain for the exchequer and the fiscal strain due to fluctuations in international oil prices has been a matter of concern that keeps revisiting. But, thanks to Covid-19, a rare opportunity to realise a certain degree of energy security has been tossed for India and by utilizing it appropriately, a solid accumulation of Strategic Petroleum Reserves (SPR) can be build that will make the economic revival process much attainable.

In terms of realising the ‘Make in India’ objective, nothing can be more opportune than the current moment when major international players, particularly the Original Equipment Manufacturers are thinking twice in continuing their China operations and are in search of alternative manufacturing hubs.

India can cash on these handsomely, only if there are genuine intentions and continued efforts.