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Government has taken steps to mitigate risks arising from West Asia conflict: Ministry of Finance
India's government is actively addressing the West Asia crisis. New groups are formed to tackle supply chains and energy. Measures are in place to diversify oil imports and boost domestic production. The focus is on managing economic risks and ensuring stability. These actions aim to protect the nation's economy from global disruptions.
New Delhi: The government has taken a host of measures to mitigate external risks, support the balance of payments, and maintain amid the ongoing West Asia crisis, Minister of State for Finance Pankaj Chaudhary said on Monday.
In a written reply to a question in the Lok Sabha, Chaudhary said the government is consistently reviewing and closely monitoring the economic impact of the ongoing at the highest levels and taking immediate corrective and facilitative measures as warranted.
Seven new empowered groups have been constituted to undertake swift and far-reaching action on supply chains, petrol-diesel, fertilisers, gas and inflation. In addition, an Inter-Ministerial Group on supply chain resilience has been operationalised to monitor the situation and coordinate facilitation measures related to exports and imports.
To a question on the extent by which the GDP growth and foreign investment is likely to be affected due to the crisis, Chaudhary said, "The overall impact of the ongoing conflict will depend on the evolving global situation, including the duration and intensity of the conflict".
He listed out the steps taken by the government to deal with the crisis, including measures to manage external sector volatility and support the balance of payments.
The government has taken steps to diversify crude oil/LNG/LPG import sources, and also to enhance LPG (liquefied petroleum gas) production, rationalise natural gas allocation to priority sectors, encourage LPG-to-PNG (pipeline natural gas) conversions where systems are in place, and curb hoarding through enforcement actions.
"Supply chains are being closely monitored, supported by trade facilitation measures and coordinated inter-ministerial action. These measures are aimed at mitigating external risks, supporting the balance of payments, and maintaining macroeconomic stability," Chaudhary said.
have risen almost 50 per cent since the US and Israel launched military strikes against Iran on February 28, triggering sweeping retaliation from Tehran.
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Source: EconomicTimes
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