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Union Finance Minister Pranab Mukherjee on Thursday expressed concern over the ongoing crisis in West Asia, as two-thirds of India's crude imports are from that region. He, however, expressed confidence that measures being taken by the United Progressive Alliance government would help to bring down inflation.
Pointing out that the political crisis in West Asia and North Africa, besides the natural disaster in Japan, could have some impact on the Indian economy and give rise to inflation, he, however, said the government was conscious of these facts, as the country's “vital interests” were involved. “If you look at our oil requirement...out of the 100 million tonnes imported last year, 67 million tonnes or two-thirds, came from the Middle East [West Asia] alone. Similarly, 60 lakh NRIs live in the Gulf region. If the situation remains unstable there, it is quite natural for anyone to express concern and to hope and to try, if possible, to restore normalcy, peace and stability in the region,” Mr. Mukherjee said in the Rajya Sabha.
He was replying to a debate on The Finance Bill, 2011, which was passed and returned to the Lok Sabha.
Pointing out that the increase in global commodity prices was a reality which the country had to live with, the Minister said he was referring to the crisis in West Asia or Japan not to take cover for prices going up. “Today my primary concern is about availability... it is not an excuse.”
Referring to inflation, which was raised by many members, Mr. Mukherjee said it was extremely difficult to predict the level of inflation in the wake of the uncertainties globally. “[Although] the three indices relating to consumer prices show inflation in the single digit, the level remains too high to be acceptable,” he said and assured the House that the government was making efforts to bring it down to a reasonable level. The Centre and the States had to work collectively to remove supply bottlenecks, a move to tame inflation.
On GDP growth, Mr. Mukherjee said it would be in the range of 9 per cent in 2011-12 despite a likely slowdown in foreign inflows. “For growth, I am betting on robust domestic savings and rate of investmen in the range of 36-37 per cent.”
Pointing out that the political crisis in West Asia and North Africa, besides the natural disaster in Japan, could have some impact on the Indian economy and give rise to inflation, he, however, said the government was conscious of these facts, as the country's “vital interests” were involved. “If you look at our oil requirement...out of the 100 million tonnes imported last year, 67 million tonnes or two-thirds, came from the Middle East [West Asia] alone. Similarly, 60 lakh NRIs live in the Gulf region. If the situation remains unstable there, it is quite natural for anyone to express concern and to hope and to try, if possible, to restore normalcy, peace and stability in the region,” Mr. Mukherjee said in the Rajya Sabha.
He was replying to a debate on The Finance Bill, 2011, which was passed and returned to the Lok Sabha.
Pointing out that the increase in global commodity prices was a reality which the country had to live with, the Minister said he was referring to the crisis in West Asia or Japan not to take cover for prices going up. “Today my primary concern is about availability... it is not an excuse.”
Referring to inflation, which was raised by many members, Mr. Mukherjee said it was extremely difficult to predict the level of inflation in the wake of the uncertainties globally. “[Although] the three indices relating to consumer prices show inflation in the single digit, the level remains too high to be acceptable,” he said and assured the House that the government was making efforts to bring it down to a reasonable level. The Centre and the States had to work collectively to remove supply bottlenecks, a move to tame inflation.
On GDP growth, Mr. Mukherjee said it would be in the range of 9 per cent in 2011-12 despite a likely slowdown in foreign inflows. “For growth, I am betting on robust domestic savings and rate of investmen in the range of 36-37 per cent.”