Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said that the Indian economy is now poised for recovery but high crude oil price is a cause for concern.
The banking sector in the country is stable, capital is available and credit offtake is poised to take off, he said at a webinar organised by Bharat Chamber of Commerce.
“We are not unique to the phenomenon of uncertain growth and high inflation due to the pandemic. Developed countries are also facing the same problem,” he said.
The budget for 2022-23 has been made keeping in mind that the price of crude oil will be around USD 75 per barrel. But due to the conflict between Russia and Ukraine, the price of Texas crude is now USD 96 per barrel. “Its impact on the Indian economy will depend how long this high.Price will remain,” Nageswaran said.
According to him, inflation and purchasing power is a worldwide problem. This has been due to rise in shipping costs, high container costs and high oil prices.
In India inflation…