Government in search of viable options to procure cheaper crude

Though geo-political tension triggered by the conflict between Russia and Ukraine have not stopped and the economic fallout of the crisis is only gradually unfolding in the form of global food shortages and rising Brent crude oil prices, “the government is exploring all viable options like import diversification to procure crude oil at affordable prices”.

In the economic review for the month of March 2022, released by the Finance Ministry on Thursday, it has been mentioned that to offset the consequences of geopolitical conflicts, GatiShakti and production linked incentives schemes will drive investment, which will deliver high-post-recovery growth for the Indian economy.

“Geopolitical conflicts and their consequent impact on food, fertiliser and crude oil prices cast a cloud on the growth outlook globally. India may feel its impact although the magnitude will, of course, depend on how long the dislocations in energy and food markets persist in the financial year and how resilient India’s economy is to mitigate the impact. Transient shocks may not have a big effect on real growth and inflation,” it said.

“Offsetting these potential headwinds, GatiShakti and Production Linked Incentive Schemes will drive investment, which will combine with supply chains strengthened by structural reforms taken in the past few years to deliver high-post-recovery growth for the Indian economy,” the monthly review report noted.