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India considering all options to import rough at affordable rates: Mof

The government is exploring all viable options, including import diversification, to source crude at an affordable price, the finance ministry said April 7. Current levels of international crude prices, if they persist for long, could hamper India achieves a real economic growth rate of 8% in FY23.

India’s economy has recovered rapidly in 2021-22, following the contraction caused by the pandemic, and could show resilience thanks to the government’s focus on capital spending and improved economic performance. financial health of the corporate sector.

However, geopolitical conflicts and their impact on food, fertilizer and crude oil prices have clouded growth prospects globally, and India could also feel the effects.

The magnitude of the impact will depend on:

  • How long dislocations in the energy and food markets persist over the year.
  • How resilient India’s economy is to mitigate the impact.
  • However, transitory shocks may not have a large effect on real growth and inflation.
  • The economic fallout from the Russia-Ukraine crisis is gradually unfolding and has led to a stabilization of international fertilizer prices at levels above pre-conflict levels. Eventually, prices may fall depending on global momentum. Currently, the economy is benefiting from the continued growth momentum in agriculture.

    Early estimates of horticultural crop production for 2021-22 point to an increase in the area sown to fruits and vegetables. It is expected that the steady increase in area under summer crops, crop diversification and increased purchases during the ongoing 2021-22 kharif market season (KMS) will increase income levels in the rural economy.

    (Edited by : Anand Singha/Shoma)

    First post: STI

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