India’s $13 Billion Pay Rise Seen Lifting Oil Demand on New Cars
- Country expected to pass Japan as world’s 3rd largest oil user
- Auto industry to benefit as workers buy personal transporation
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India’s $13 billion pay increase for federal employees will boost car and motorcycle purchases, increasing fuel use in a country with the world’s fastest oil demand growth.
Prime Minister Narendra Modi’s cabinet this week decided to increase salaries for federal government employees resulting in a payout of roughly 849 billion rupees ($13 billion) for 4.7 million workers and 5.2 million pensioners in the year through March 2017. The move is seen as a boon for auto sales, which have been the driving force behind the country’s accelerating oil consumption.