Whenever there is any major movement at the international level, its direct impact is felt in every corner of the world. At present, the deepening war crisis between Iran, America and Israel has increased the concerns of the whole world. As a common citizen, the first question that arises is what effect will this ongoing war across the seven seas have on our household budget and India’s economy? Union Commerce and Industry Minister Piyush Goyal has presented a clear picture to the countrymen on this important issue. He believes that due to the ongoing tension in the Middle East, there may be a decline in India’s economic activities for some time, but there is no reason to panic in the long run.
India’s foundation is strong
Expressing confidence in the strong economic foundation of the country, Piyush Goyal has made it clear that India is a very flexible and strong country. Even when clouds of war are looming around the world, the Indian economy remains strong. He emphasized that the people of the country understand the seriousness of the current global challenges and are fully ready to work together with the government. According to the Commerce Minister, it is true that due to the war, there may be a slight slowdown in our economic activities in the initial phase. However, this effect will last only for some time. He has assured that we will make up for this loss rapidly in the coming months.
Where crude oil spoils the game
Whenever there is a war situation in the countries of the Middle East, the first thing that happens is the prices of crude oil start touching the sky. And when oil is expensive, the prices of everything of daily use increases due to increase in transportation costs. The Research Department of State Bank of India (SBI) has pointed towards this economic threat in a report released on March 7. According to the report, if crude oil prices remain around $ 100 per barrel till the next financial year, then the country’s GDP (gross domestic product) growth rate may fall to 6.6 percent. Along with this, the inflation rate may also increase to 4.1 percent. The situation will become more challenging when oil prices touch the level of $ 130 per barrel. According to SBI, if this happens, the GDP growth rate may drop directly to 6 percent.