Government closely monitors global commodity price movements amid Russia-Ukraine war: MoS for Finance Pankaj Chaudhary

MoS for Finance Pankaj Chaudhary said the government is also keen to support initiatives to release strategic oil reserves to mitigate market volatility

MoS for Finance Pankaj Chaudhary said the government is also keen to support initiatives to release strategic oil reserves to mitigate market volatility

The government is closely monitoring global commodity price movements and their impact on the Indian economy through trade following global supply disruptions during the Russia-Ukraine war, parliament was informed on Tuesday.

Finance Minister Pankaj Chaudhary said the government is also determined to support initiatives to release strategic oil reserves to mitigate market volatility and calm the rise in crude oil prices.

Asked whether the government carried out an economic review after the outbreak of war between Russia and Ukraine, the minister said that geopolitical tensions between Russia and Ukraine have led to global supply disruptions, leading to a sharp increase in global Commodities have led prices including crude oil, gas, cooking oils and fertilizers, among others.

“The Indian government is closely monitoring global price movements and their impact on the Indian economy through trade,” he said.

He said India’s GDP is estimated to grow by 8.9% in 2021-22, which will take the country’s GDP beyond its recent pre-pandemic performance of 2019-20 to complete the recovery process.

“Furthermore, the government is also committed to supporting initiatives to release strategic oil reserves to mitigate market volatility and calm the rise in crude oil prices,” said Mr. Chaudhary.

International oil prices started rising this year, jumping to a 13-year high of $140 a barrel earlier this month in the wake of the Russia-Ukraine war. Brent was trading at $118.59 a barrel on Tuesday. India relies on foreign purchases to meet about 85% of its oil needs, making it one of the countries in Asia most vulnerable to higher oil prices.

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