NEW DELHI: Amid soaring crude oil prices, the Government is exploring all viable options, including import diversification, to procure crude at an affordable price, the Economic Affairs Department said Thursday in its monthly economic review for March.
It added that the higher oil prices may hamper the country’s growth target of 8% in FY23. “Affordability is desired as even the present level of international crude price, should it persist for a long time, may come in the way of India achieving a real economic growth rate of 8% in FY23,” it said.
The government’s thrust on capital expenditure and improved corporate sector’s financial health will help the Indian economy in becoming resilient after it got adversely impacted during the Covid pandemic in FY22, the report said.
Meanwhile, the report further added that the impact of the crisis on food, fertilizer and crude oil prices cast a cloud on the growth outlook globally. India too will feel its effect although the magnitude will 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, it added.
Transient shocks may not have a big effect on real growth and inflation.“…..gross foreign direct investment (FDI) inflows into the economy have risen to US$ 69.7 billion during April-January, 2021-22. Investments funded through External Commercial Borrowings (ECBs) have continued to remain on an upswing as well, registering a 29.7 per cent growth during April- February, 2021-22 vis-à-vis the corresponding period of last year,” it stated.