Economy faces a windfall with spurt in oil prices
"India has been robbed of at least one per cent of growth due to surge in oil prices," says Chidambaram.
By PTI |
NEW DELHI: Charging oil-producing countries with exploiting oil consuming nations, India on Sunday warned it has been "robbed" of at least one per cent economic growth due to surge in global crude prices which is mostly for speculative purposes.
"India could certainly have achieved 9-9.5 per cent growth...It has been robbed of at least one per cent of growth due to surge in oil prices," Finance Minister P Chidambaram said adding that spurt in prices was not certainly supply-demand driven but speculative.
If the world is serious about achieving Milennium Development Goals to alleviate poverty in developing countries, one has to seriously ponder over the issue, he said at India Economic Summit organised by the World Economic Forum and CII here.
Citing the example of Russia, Chidambaram said the country's budget was based on oil prices of 45 dollars a barrel but when oil price spiralled to 78 dollars a barrel, the economy had a windfall.
"What is happening is certainly speculative in nature and hope that better sense prevails," so that developing countries like Inida and China, which have huge demand for oil imports, are able to sustain high economic growth, he said.
"India could certainly have achieved 9-9.5 per cent growth...It has been robbed of at least one per cent of growth due to surge in oil prices," Finance Minister P Chidambaram said adding that spurt in prices was not certainly supply-demand driven but speculative.
If the world is serious about achieving Milennium Development Goals to alleviate poverty in developing countries, one has to seriously ponder over the issue, he said at India Economic Summit organised by the World Economic Forum and CII here.
Citing the example of Russia, Chidambaram said the country's budget was based on oil prices of 45 dollars a barrel but when oil price spiralled to 78 dollars a barrel, the economy had a windfall.
"What is happening is certainly speculative in nature and hope that better sense prevails," so that developing countries like Inida and China, which have huge demand for oil imports, are able to sustain high economic growth, he said.
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