The economic affairs secretary Subhash Chandra Garg has said that the constant rise in global oil prices and hardening bond yields will not have any impact on the economic growth of India. He also said that the fiscal deficit programme has been going on very smoothly and there has been no reason to believe that there will be any greater impact. He added that the growth parameters are very sound, macroeconomic parameters also continue to be very sound and inflation is within the range.
Garg has said that the country's growth continues to be stable with strong macroeconomic fundamentals. He said that the spurt in oil prices will push up the oil import bill by $25 billion to $50 billion under different scenarios and impact current account deficit (CAD), but inflation is under control and the fiscal deficit scenario is not worrisome either. Besides, India spent around $72 billion on oil imports last year. Moreover, crude oil prices has touched $80 per barrel, the highest since November 2014, giving rise to risk of higher inflation and petrol diesel prices across nations.
Economic affairs secretary further said that currency in circulation has come down in the last four days but situation is completely normal now. He also said that some outflows in the bond and equity markets have been seen but it is not alarming. Regarding the possibility of an excise duty cut on petrol and diesel, Garg said the government is not considering a tax cut at the moment. He said one needs to 'watch what is happening'.