Consider the following statements regarding the macroeconomic transmission of crude oil prices to the Indian economy:

Statements

1. A sustained decline in global crude oil prices improves India's trade balance primarily because India is a net exporter of refined petroleum products, which fetch higher margins in a low-crude environment.
2. High crude oil prices exert upward pressure on India's current account deficit by simultaneously increasing the import bill and contributing to imported inflation that erodes household purchasing power.
3. Softer crude oil prices can enhance the Reserve Bank of India's monetary policy flexibility by reducing headline inflation and thereby creating room for accommodative policy without stoking price pressures.