India must battle these twin economic problems

As oil and gold imports are over 40% of the pie.

According to DBS, the simultaneous easing in global gold and crude oil prices has raised expectations that the economy’s twin problems - current account balance along with inflation outlook is set to improve in the months ahead.

This is not without reason, given that oil and gold imports constituted over 40% of total imports in the last fiscal year.

Here's more from DBS:

To be sure, gold prices have been trending lower since the past six months, however, the pullback has attracted more attention recently as the pace of decline hastened.

From its peak in September12, the USD-priced gold prices are down 13%, while in rupee terms it is shallower at 8%. That said, the significant contribution of the rising gold imports to the deterioration of the trade account has been notable, with the latter accounting for 30% of the deficit in the past two years