New Delhi (NVI): Amid concerns over fall in crude oil prices and its panic effect in the financial markets, ASSOCHAM today said that low fuel prices would, in fact, help the Indian economy.
Deepak Sood, the ASSOCHAM secretary-general said that India’s macro picture will not be affected by the fall in crude prices and it would rather turn out to be positive for the Indian economy.
“India being a large importer of crude oil, fall in prices, would be a positive for the Indian economy, although there is global sentimental downside. Going forward, low prices of crude can be a demand driver for India, from the automobile industry to consumption as inflation would be tamed. Lower inflation would also help further cuts in the interest rates,” said Sood.
The global crude prices plunged by close to 30 per cent in a single day, near USD 30 per barrel today.
The ASSOCHAM secretary general further said: “In the given global scenario, India needs a push from the domestic consumption which would be given an impetus from lower prices, including those of raw material. Rural demand is also expected to get a push following Rabi harvest next month.”
“India’s overall import bill would be dropping sizeably and help the country’s current account position, giving more elbow room to the government,” he added.
