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In case you are not aware of the latest updates of the FICCI’s Economic Outlook Survey for 2018-19 , an annual median GDP growth at 7.4 percent has been announced. This Survey was conducted by a group of economists belonging to the banking, industry and financial services sector, way back in the month of July. The minimum and the maximum range of percentage has been established as 7.1 and 7.5. It appears that this projection is synced with the estimates, which have been decided earlier by the Reserve Bank of India. The time period of 2018-19 has predicted the median growth for agriculture and allied activities to be fixed at 3 percent, which has a minimum range of 2.4 percent and a maximum range of 4.3 percent. It is expected that the monsoon season will prove to be extremely beneficial for the sector. Though the months of June and June have not shown instances of heavy rainfall, the later monsoon months of August and September have somewhat made up for the loss. Also, the industry and services sector are most likely to experience a boost in growth by 6.9 percent and 8.3 percent, respectively. In the first quarter of the period 2018-19, a GDP growth of 7.1 percent is being expected after taking the quarterly median forecasts into account. The Central Statistical Organization had planned on releasing the growth figures for the first quarter to the public, soon enough. Coming to the external front for 2018-19, the median current account deficit forecast continued persistently at 2.5 percent of GDP. The effect on merchandise exports and imports is reflected by recording a growth by 9.8 percent and 14.2 percent throughout the year, respectively. It should be mentioned here that the steep increase in oil rates during the last year will positively show repercussions on both the current and fiscal account deficits. Since many nations like Mexico, Canada, China etc. have opted for various retaliatory measures as a prompt response to some measures undertaken by the US, the trade tensions have considerably increased and hindered the overall growth. The looming presence of this tension has become the main reason for concern and unrest. Many economists are of the same opinion that if the trade war is extended beyond a short period of time, it can have a great impact on our country. Moreover, now that the US is undergoing a constant rise in inflation levels as related to the higher domestic prices of imported goods, it can lead to a new surge in the interest rates. This sudden increase can further cause a greater outflow of foreign capital from the developing economies and in turn, can have a solid influence on India. If US plans to increase its tariffs, the Indian goods will be deemed as less competitive. For this matter, it is important for all the countries to reach a consensus or else the world might witness the devastation of a rule-based, multilateral trade system. As a dire consequence, India might find itself in a grave situation. However, a majority of the participating economists consider this US-driven trade war to be a temporary phase that will soon pass. They are hopeful that the US will think twice about the new tariff structure and even decide to revoke some of the new tariffs in the medium term. The economists feel that the changes will occur before US enters the general elections. As we already know, the rupee-dollar exchange rate had drastically decreased in value in June 2018. The panel of economists engaged in serious discussions regarding the movement of the rupee in the near term and the feasibility of the rupee-dollar exchange rupturing the 70 mark. Unfortunately, this pressure on rupee is most likely to continue till 2019. The two main factors that will influence the rupee are the oil prices and the domestic/global economic developments in the near future. To make things worse, the ongoing uncertainties prevalent in the trade and financial markets can pose as a serious threat to the value of the already stressed rupee. It is true that the trade tensions occurring between the major economies are interfering with the normal situation of the global economic recovery. If we focus on the domestic front, it is being assumed that there will be a greater degree of political risk premium for the rupee, as the time has arrived for India to prepare for the state elections (in late 2018) and the general elections (in early 2019). Still, the economists ended the discussion on the positive note by stating that suitable investor confidence and a long-term growth will work wonders in bringing the much-needed stability to the Indian currency. If we talk about the current scenario in the oil market, India and China have joined hands to launch an Oil Buyers’ Club to fight the dominance of OPEC in oil pricing. The economists had a long discussion regarding this joint venture between the two nations and its future prospects in the oil industry. The conclusion was that the cooperative strategy (in the form of Oil Buyers’ Club) will fare well as it will accentuate the negotiating power of both India and China. If other oil-importing nations like Japan and South Korea take part in this cooperative arrangement, then it can show a lot of potential in fixing a well-negotiated, affordable pricing instead of accepting the pricing dictated by sellers. This will further ensure that the two nations will have a sustained oil demand and encourage other countries to sign long-term contracts and ultimately lessen the volatility in crude oil rates. Plus, the hedging of oil prices can reduce the effects of volatility on the macroeconomic fundamentals of a particular nation. The participating economists also advised the Government to encourage more private investments in the field of domestic exploration and oil production, which will demotivate the excessive dependency on imports. Another suggestion is to look for alternative technologies and invest in different energy sources that are clean and renewable, such as bio-gas, solar energy, wind etc. Also, India can gain more insight by establishing closer ties with countries like Iceland and Island, which have pioneered in renewable energy technology and can successfully harness it. This up-to-date knowledge can motivate India to develop its own energy sector.