NEW DELHI: Rising global crude oil prices, triggered by the conflict between Israel and Iran, pose a risk for India, a top official said on Wednesday, adding that the impact on the economy, however, would depend on the extent of the increase and how long it lasts.“The current conflict between Israel and Iran may not be too good for us. In the last week, crude oil prices rose to about $73-74 per barrel. This raises essential risks for India,” chief economic adviser V Anantha Nageswaran told a news agency in Thiruvananthapuram.He said in 2022, when the Russia-Ukraine war started, crude oil prices went to $100 per barrel. “Yet the economy was able to sustain a 7% growth rate. A lot depends on how much the crude oil prices rise further and how long that period lasts,” Nageswaran said. He also said that the Indian economy maintained a good growth rate in 2024-25 at 6.5% against the backdrop of an uncertain and complex global situation, and in 2025-26, it is estimated between 6.3-6.8%.“To achieve 6.5% on a steady basis in this environment is a creditable achievement. India is poised to maintain that track record,” said Nageswaran.He also said that the difference between India’s growth rate and the average growth rate of developed economies is much higher now than it was between 2003 and 2008 when India’s economy was growing at 8-9%. Nageswaran said the current govt unveiled a number of reform measures, which should help in boosting growth. “If we are able to move faster and convey a sense of dynamism, we can improve on our growth rate,” he said.
