No impact of Israel conflict on Indian economy via oil prices; taking steps to minimise effect of global shocks: Finmin
economictimes.indiatimes.comfinance ministry on Tuesday said the Israel-Hamas war has no impact on the Indian economy through the global crude oil prices, which have receded to the pre-conflict levels after a temporary increase in the immediate aftermath of the tension.
In a written reply in the Rajya Sabha, minister of state for finance Pankaj Chaudhary also said the government has been successfully adopting measures to mitigate global shocks on the domestic economy over the past three-four years.
These steps include diversification of the sources of critical imports, increasing the supply of domestic output to restrain inflation and strengthening domestic growth drivers, he said.
“Presently, high public capital expenditure, robust private consumption and expanded digital public infrastructure are some of the strong domestic growth drivers, which have made India the fastest growing economy in 2022 and 2023 as per the estimates of IMF (International Monetary Fund),” he said.
As for the Indian basket of crude oil, Chaudhary said, the prices hit a post-conflict peak of $93.9 per barrel on October 20 from $85.7 on October 6, a day before the outbreak of the conflict. However, they were down to $78.4 as of December 5.
Global brent crude oil futures had posted their sharpest weekly losses since March in the week through October 6 to $84.60.
