The prevailing Ukraine crisis may “worsen the situation if not resolved within a few months,” he observed. “Its impact on the Indian economy will depend on how long this high price will remain”.
Chief economic advisor of India, Dr. V Anantha Nageswaran
As the apparent fear of Indian government over soaring crude oil prices in the event of Russian invasion of Ukraine, today gained reality, the chief economic advisor (CEA) of India, V Anantha Nageswaran, said that the impact of Ukraine crisis on the Indian economy will depend on how long crude price will remain elevated.
With Russian forces infiltrating Ukraine while bombing the latter’s air bases, the prices of global crude oil today crossed $100 per barrel while stock markets across the global, including domestic bourses, crashed. Russia is considered the second biggest exporter of crude oil.
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The CEA, Nageswaran, during his interaction with the members of Bharat Chamber of Commerce, in a session on “Recovery, Renewal and Resurgence of the Indian Economy”, said that rising crude oil prices and freight charges following a global supply chain disruption were the main reasons behind global inflation. The prevailing Ukraine crisis may “worsen the situation if not resolved within a few months,” he observed. “Its impact on the Indian economy will depend on how long this high price will remain”.
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Nageswaran, however, noted that compared to most advanced economies and emerging economies, India’s growth projections were way too impressive. On inflation, he said that except China, all other BRICS nations had recorded inflation higher than India. India’s economic recovery is expected to start from the second half of the next fiscal, he opined.
The chief economic advisor said that the nominal GDP growth has been targeted at 11 per cent and with inflation at four per cent, the real GDP growth will be seven per cent. “For India to achieve $5- trillion economy, the share of agriculture, manufacturing and services should be in the ratio 20:30:50 in the country’s GDP,” he said.
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