Fall in global oil prices due to COVID-19 may have positive impact on India, says Anurag Thakur

There has not been any adverse impact on economy and decline in global oil prices triggered by outbreak of coronavirus can only help India, said Minister of State Finance Anurag Thakur on Wednesday morning. Speaking in Rajya Sabha, Thakur said that data on trade indicators of domestic output don't suggest impact on Indian economy but added that near-term macroeconomic outlook looks vulnerable to disruption of trade with China.

"As is true for world at large, India's near-term macroeconomic outlook also vulnerable to disruption of trade with China & 2nd-round effects arising from expected slowdown in global growth. However, latest available data on trade & indicators of domestic output don't suggest any adverse impact on economy. Additionally, a positive impact on India's economy may arise from decline in global oil prices triggered by outbreak of COVID19," he said.

The minister added that in order to address possibility of trade-induced adverse impact on economy, government is constantly engaging with Expert Promotion Councils & trade bodies, particularly in pharmaceutical, electronics & automobile sectors where supply chains are sourcing imports from China.

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"These agencies put in touch with Indian Missions abroad to secure & transport inventories available with existing suppliers. Indian Missions abroad have been asked to explore alternate sources of supply of raw material for supporting India's domestic production," Thakur said.

He added that with regards to domestic availability of fertilisers, impact of COVID19 seems to be negligible at this juncture and the situation of forthcoming fertiliser imports at various ports being observed closely.

This came after number of cases in the country rose to 147 on Wednesday, with 10 fresh cases reported from various parts of the country, according to the Health Ministry. The cases include 25 foreign nationals and the three persons who died in Delhi, Karnataka and Maharashtra.