Fall in crude prices to help India; macros to improve: ASSOCHAM

Monday, March 09, 2020

New Delhi, March 9, 2020
: Panic in the financial markets today, owing to a massive fall in the crude oil prices, does not affect India’s macro picture; on the contrary low fuel prices would help the country, said ASSOCHAM secretary general, Mr Deepak Sood. 
“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 Mr Sood. The global crude prices plunged by close to 30 per cent in a single day, near USD 30 per barrel.  
Mr Soodalso said,“India continues to remain amongst the least affected countries from the Coronavirus, although ‘we need to be on a continuous alert.’ In the short term, there is no denying the fact that certain industries like hospitality and aviation may get impacted.  The big global jerk being witnessed would be more of a plus than minus for India, as it is being largely driven by capitulation of the crude market.”
He 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,”added ASSOCHAM secretary general.  
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
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