The Finance Ministry on April 7 said that the central government is exploring “all viable options” for procuring crude oil at cheaper rates. The Finance Ministry in its monthly Economic Review report for the month of March wrote, “The spirit of self-reliant India puts national economic and security interests above any other consideration. For this the government is exploring all possible options including imports.” “
The report said, “Despite the current level of international crude oil price, we should get it at a reasonable price. There may be difficulties in achieving real economic growth.
Finance Minister Nirmala Sitharaman made similar remarks at the 17th edition of the CNBC-TV18 India Business Leaders Awards on April 1, saying if the fuel was available at a discount, India would have bought it.
However, the Finance Ministry’s review report paints a frightening picture. It added that the increase in imports in March due to month-on-month rise of 20 per cent in crude oil prices is not good for the economy in the coming year”.
India’s goods imports crossed the $40 billion mark for the first time in March. According to preliminary data, last month imports were close to $59.1 billion.
India’s total merchandise import bill for FY22 was $610.2 billion.
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In a monthly review report, the Finance Ministry said, “India is focusing on various geographies to ensure the security of crude oil supplies and reduce the risk of dependence on crude from a single region. This includes the Middle East, Africa, North America, and the Middle East. The US is focusing on meeting its petroleum needs in South America etc.” At the same time, getting cheaper crude oil from Russia and exploring energy sources beyond conventional hydrocarbons were part of the strategy to mitigate the adverse effects of high crude prices.
According to a Bloomberg report, the US has criticized India’s purchase of concessional crude oil from Russia. According to reports, President Joe Biden has been disappointed with some of India’s reactions to Russia’s invasion of Ukraine. US warns India against forging an alliance with Russia.
On April 7, Bloomberg quoted Brian Deese, director of the White House National Economic Council, as saying, “We are certainly disappointed by the decisions of both China and India regarding the invasion. “
On 5 April, White House Press Secretary Jen Psaki said that it is not in India’s interest to increase its energy imports from Russia. After this this comment of Deej has come.