Govt closely monitoring global commodity price movements amid Russia-Ukraine war: FinMin

The government is closely monitoring the global commodity price movements and their impact on the Indian economy through trade in the aftermath of global supply disruptions amid the Russia-Ukraine war, Parliament was informed on Tuesday. Minister of State for Finance Pankaj Chaudhury said the government is also committed to supporting initiatives for releases from Strategic Petroleum Reserves to mitigate market volatility and calm the rise in crude oil prices.

To a question on whether the government has made any review of the economy consequent upon the breakout of war between Russia and Ukraine, the minister said the geopolitical tension between Russia and Ukraine has led to global supply disruptions, resulting in a steep increase in global commodity prices, including crude oil, gas, edible oils and fertilisers, among others.

"Government of India is closely monitoring the global price movements and their impact on India's economy through trade," he said.

He said India's GDP in 2021-22 is estimated to grow at 8.9 per cent, which will take the country's GDP past the most recent pre-pandemic output of 2019-20 to complete the recovery process.

"In addition, Government is also committed to supporting initiatives for releases from Strategic Petroleum Reserves, for mitigating market volatility and calming the rise in crude oil prices," Chaudhury said.

International oil prices started rising this year and jumped to a 13-year high of USD 140 per barrel earlier this month as an aftermath of the Russia-Ukraine war. Brent was trading at USD 118.59 per barrel on Tuesday.

India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices.