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Crude oil price surge amid West Asia stand-off may strain fiscal deficit, current account: Finance ministry
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The Indian Express
In the wake of persistent stand-off in West Asia, the Indian economy continues to face an upside risk to inflation, fiscal and current account deficits and downside risk to growth, the Ministry of Finance said on Friday.
The recent resurgence in global crude oil prices, if sustained, could “reemerge as a source of pressure on financing of both the fiscal deficit and the current account balance”, the ministry said in its monthly economic review for July.
“Instances such as flooding in Chile, one of the key copper suppliers, illustrate the concentration risk embedded in India’s industrial metal supply chains,” the ministry said.
Despite heightened global uncertainties, the ministry said the country’s economic outlook remains underpinned by resilient domestic fundamentals, continued policy support, and strengthening structural drivers of growth.
Commodity prices, crude oilCommodity prices, particularly crude oil, which had declined below pre-conflict levels, have risen again this month.