Rising global crude oil prices, a sharp increase in fertilizer costs and a decline in national foreign exchange reserves amid the Middle East crisis have become a serious problem for the Indian economy, Finance Minister Nirmala Sitharaman said.
“The Indian government is closely monitoring the impact of the Middle East crisis on the Indian economy. Rising global crude oil prices, a sharp increase in fertilizer costs and a decline in national foreign exchange reserves have become risk factors and a serious problem for our economy“, PTI quoted the minister as saying at a business conference in the Indian capital. Against this backdrop, India's recent cut in excise duty on petrol and diesel will result in a revenue loss of nearly 1 trillion rupees ($10.5 billion).
The problems are largely due to external factors, but there is no reason to panic. “The economic situation in India remains positive and stable even now. The government's measures are aimed at ensuring growth and reducing external pressures on the country's economy,“ Sitharaman stressed.