According to the data provided by the International Monetary Fund, India provided the fourth largest fuel subsidies among countries in absolute terms in 2022 preceded by China, the United States and Russia.Out of India’s $346 billion (or 10.6 percent of GDP) fuel subsidies, _________ is explicit subsidies while $314 billion is implicit subsidies.

Solution

According to the data provided by the International Monetary Fund, India provided the fourth largest fuel subsidies among countries in absolute terms in 2022 preceded by China, the United States and Russia. Globally, fossil fuel subsidies were $7 trillion in 2022 or 7.1 per cent of GDP.According to the IMF data, China had the highest fuel subsidies ($2.2 trillion) in 2022, followed by the United States ($757 billion), Russia ($421 billion), India ($346 billion), and the European Union ($310 billion).Out of India’s $346 billion (or 10.6 per cent of GDP) fuel subsidies, $32 billion is explicit subsidies while $314 billion is implicit subsidies. However, India’s per capita fuel subsidies was much lower at $245 compared to Saudi Arabia ($6996), South Korea ($3120), Russia ($2982), Japan ($2498), US ($2243) and China ($1568).