Oil prices in India a reflection of what's happening globally, says CII chief

By Shailesh Yadav

New Delhi [India], June 17 (ANI): Following the Confederation of Indian Industry's projection that India's GDP is expected to grow at 9.5 per cent in the current financial year, CII president TV Narendran said the increase in petrol and diesel prices in the country was a reflection of what is happening globally.

While speaking to media, TV Narendran spoke about the surge in petrol-diesel prices and said, "You know, obviously it's a reflection of what's happening globally, right. So, commodity prices have been going up because, like I said, earlier the recovery in China and US in the developed world has been much faster than people expected. Geopolitical issues also play a role."

"What's happening between the USA and Iran and the nuclear issues are those thoughts coming to a conclusion. Will Iran come back into the supply chain in a bigger way? So I think, there are multiple factors playing out on oil prices. You know, India has listed relatively low oil prices over the last few years, which gives an opportunity for the government to raise some taxes and get some revenue. So I guess, the government will have to find a better balance, because I think what is important is to get back at growth," said CII chief Narendran.

"As the government has leverage in the past, oil prices will generate more revenue with slightly higher taxes. If there is that headroom available in the fiscal deficit for the government to get bigger, what would be a more balanced approach to get the demand going. I think what is most important is to get the demand going," said CII and TATA Steel chief, Narendran.

The CII said we have to make sure supply chain issues are sorted out. You know as we get the demand going so that we have the jobs, the body added.

The CII said on Thursday the country's gross domestic product (GDP) is expected to grow at 9.5 per cent in the current financial year (FY 2021-22). This will take the GDP to a level that is slightly higher than in FY20. (ANI)