The government is constantly watching global commodity prices and their influence on the Indian economy via trade in the context of global supply interruptions caused by the Russia-Ukraine conflict, Parliament was informed Tuesday.
Pankaj Chaudhury, Minister of State for Finance, stated that the government is also committed to supporting attempts to use Strategic Petroleum Reserves in order to reduce market volatility and stabilise the rise in crude oil prices. In response to a question about whether the government has conducted an economic review in light of Russia's outbreak of war with Ukraine, the minister stated that geopolitical tensions between Russia and Ukraine have resulted in global supply disruptions, resulting in a sharp increase in global commodity prices, including crude oil, gas, edible oils, and fertilisers.
"The Indian government is actively monitoring global price fluctuations and their influence on the Indian economy via trade," he said. He said that India's GDP is expected to expand at an 8.9% rate in 2021-22, surpassing the country's most recent pre-pandemic output of 2019-20 and completing the recovery process.
International oil prices began climbing earlier this year and reached a 13-year high of USD 140 per barrel earlier this month as a result of the Russia-Ukraine conflict. On Tuesday, Brent was trading at USD 118.59 per barrel. India imports around 85 percent of its oil, making it one of the most vulnerable countries in Asia to rising oil costs.