‘India resilient despite rising oil prices’

India is well-positioned to withstand the economic impact of rising crude oil prices and geopolitical tensions in West Asia, and there is no reason for panic despite the prevailing global uncertainty, World Trade Center Chairman Vijay Kalantri said on Thursday.

Speaking to IANS, Kalantri said the recent escalation in tensions following fresh US military action against Iran has increased volatility across global financial markets. 

Crude oil prices have climbed above $78 per barrel, the Indian rupee has come under pressure and investor sentiment has weakened, resulting in volatility in domestic equity markets.  He noted that higher crude oil prices could increase India's import bill and exert upward pressure on inflation, given the country's heavy dependence on imported energy. However, Kalantri stressed that the current situation does not warrant panic. He pointed out that India has successfully managed similar periods of elevated oil prices in the past, including when crude traded above $100 per barrel. 

According to him, the country's economy has repeatedly demonstrated resilience during previous global crises and remains capable of handling the present challenges. 

He added that while the geopolitical situation remains uncertain, its future course will depend on developments involving the US, Iran and other global stakeholders. Therefore, policymakers and businesses should continue monitoring the situation closely rather than reacting to short-term fluctuations in financial markets.

Kalantri said India's strong economic fundamentals, policy framework and experience in managing external shocks provide confidence that the country can navigate the current uncertainty without major disruption.