A CRISIS FORETOLD
Business Today India|October 27, 2024
Heightened tensions in the Middle East could spell trouble for the Indian economy as crude oil prices rise and markets shiver
A CRISIS FORETOLD

THE ESCALATION OF the conflict in the Middle East after Iran launched a barrage of missiles towards Israel on October 1 (even as the latter is engaged in a ground offensive in Lebanon and amid the ongoing battle with Palestine) is raising alarm bells around the world, including India. Policymakers and corporates are closely monitoring the developments and remain concerned about their potential impact on the domestic economy. Already, there has been a surge in crude oil prices, and equity markets have been on a roller-coaster ride.

Prime Minister Narendra Modi chaired a meeting of the Cabinet Committee on Security on October 3 to review the situation. Finance ministry officials have noted that India will face some impact in the event of further escalation, but for now there does not seem to be too much concern. Petroleum and Natural Gas Minister Hardeep Singh Puri has ruled out any impact of the rising oil prices on India and said there is enough oil available and India has enough choices.

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