Oil spike fuels fresh growth worries
New Delhi/Mumbai: A record gain in crude oil prices could further aggravate India’s fiscal situation and make it tougher for the government and the central bank to effectively combat a slowdown in economic growth.
With drone attacks on Saudi Aramco’s facilities causing the biggest ever disruption in oil suppliers, India is preparing to stem the impact of the price surge. Saudi Aramco has, however, assured India that it will honour its supply contracts despite the production cuts, Indian government officials said on condition of anonymity.
India’s current account and fiscal deficits could worsen if oil prices remain at the elevated level, Reserve Bank of India governor Shaktikanta Das warned on Monday.
