Speaking on the issue of high oil prices, Finance Minister Arun Jaitley has said that exceedingly high oil prices can create problems for the country. The minister clarified, “Certainly, the oil prices at the current level, even a little higher, create helpful environment as far as India is concerned. If they are exceedingly high, then it creates problem for us. I am conscious of that.”
Oil prices rose 5 percent on Wednesday, their biggest advance in three weeks, after the US government reported a surprise draw in domestic crude stockpiles versus market expectations for a new record high. US crude contract settled up USD 1.86 at USD 37.75 a barrel.
On GDP growth, Jaitley said, global conditions are not supporting India’s growth at the moment but once it turn favorable it will push up further.
“I am conscious of the limitations that we are operating in, global headwinds are certainly not very supportive, most economies are facing their own challenges, the essential silver lining for India in this unpredictable environment is that we are not so integrally integrated with the Chinese manufacturing, the low oil price regime is the key silver-lining,” he said.
India’s response to global uncertainties would depend on good monsoon, public spending on rural areas which will help improve growth, he added.