- Inflation will be biggest risk at this time. With current food prices at record highs , deregulation in the oil sector will only cause inflation to go higher.
- The aviation industry which has just recently taken off may run into issues as they will have to deal with a sudden jump in petrol prices.
- The retail Industry that is just taking off may witness a slowdown.
- Strikes by unions in the transportation sector bringing businesses down to its knees.
- Opposition pressure to the government forcing the government to subsidise it again or lose power.
This issue like everything else is a challenge for the Indian government and they will need to innovate to find a way to save the country from higher world gas prices as inaction can lead to a high import bills compounded by slower exports resulting from a slow US economy!