Fall in crude oil prices positive for India: Economic Affairs Secretary

The fall in crude oil price is positive for the country, says Atanu Chakraborty, Economic Affairs Secretary. His views came after oil prices tanked over 30 per cent on Monday after Saudi Arabia slashed prices and set plans for a dramatic increase in crude production in April.

He also added that the domestic equity markets are falling due to global cues and coronavirus. The benchmark equity indices BSE Sensex and NSE Nifty crashed over 4 per cent intraday on Monday followed a slide in global peers as fears intensified over the spread of the coronavirus outbreak.

The number of people infected with the coronavirus topped 1,07,000 across the world as the outbreak reached more countries and caused more economic carnage.

The 30-share index declined 1,536 points to 36,040, while the 50-share Nifty index was down 425 points at 10,564.

Chakraborty also added that there is no liquidity issue in the Indian market and the country has enough foreign exchange reserve.

The country’s foreign exchange reserves jumped by $5.42 billion to a lifetime high of $481.54 billion in the week to February 14, on the back of rise in foreign currency assets, according to the latest data from the RBI.

“Fundamentals of Indian economy continue to be strong,” he added.