The government is closely monitoring global commodity price movements and its impact on the Indian economy through trade following global supply disruptions amid the Russia-Ukraine war, Parliament was informed on Tuesday.
Minister of State for Finance Pankaj Chaudhury said the government was also committed to supporting initiatives for the withdrawal of Strategic Petroleum Reserves to reduce market volatility and calm rising crude oil prices.
Answering a question on whether the government had made any economic review following the outbreak of war between Russia and Ukraine, the minister said geopolitical tensions between Russia and Ukraine had led to global supply disruptions, resulting in a sharp rise in global commodities. prices, including crude oil, gas, edible oil and fertilizers, among others.
“The Indian government is closely monitoring global price movements and their impact on the Indian economy through trade,” he said.
He said India’s GDP in 2021-22 is estimated to grow at 8.9 per cent, which will take the country’s GDP past the latest pre-pandemic output of 2019-20 to complete the recovery process.
“In addition, the Government is also committed to supporting initiatives for the issuance of Strategic Petroleum Reserves, to reduce market volatility and calm rising crude oil prices,” Chaudhury said.
International oil prices began to rise this year and soared to a 13-year high at $ 140 a barrel earlier this month as a result of the Russo-Ukrainian war. Brent traded at $ 118.59 a barrel on Tuesday.
India relies on overseas purchases to meet about 85 per cent of its oil needs, making it one of the most vulnerable in Asia to higher oil prices.