A $1 decline in the price of crude oil reduces the country's import bill by $1.5 billion. "In 2020, international crude oil prices are expected to average $35 per barrel from $65 per barrel in 2019, a fall of about $30 per barrel. India is expected to save about $45 billion on oil imports for full year 2020-21," the industry chamber said in a report.
In order to improve market sentiments, the government may consider removing Long Term Capital Gains tax of 10 % and fixing the total Dividend Distribution Tax at 25 %.
It has also suggested the RBI may consider relaxing the NPA recognition norms from 90 days to 180 days till September 30, 2020 to provide relief to the industry faced with payment issues as well as pressure on banks to classify loans as NPAs.