Between 1945 and 1973, consumption of oil products rose at a startling 4-1/2 percent average annual rate, well in excess of growth of real gross domestic product. However, since 1973, oil consumption has grown, on average, only 1/2 percent per year, far short of the rise in real GDP.
This provides an “arbitrage” opportunity to holder of liquid assets abroad, who may take advantage of higher domestic interest rates in India leading to a possible short-term upsurge in capital flows.