Just yesterday, I wrote that ADB is worried for the impact of the high oil price on Indian economy and ADB stated that may be the growth of Indian economy can see a decline from its prediction. And today, Indian Finance Minister Palaniappan Chidambaram has expressed his confidence that even the rising oil price may not able to stop the Indian economy from growing. "This year looks good to me. If investments pour in, there will be growth," Chidambaram said.
He also said, ""We have to ensure that there are no financial imbalances, there are no surprises for investors. We have recently managed our finances well". He is confident that if Indian economy is managed well then high oil price would not be able to destroy the good growth.
As for me, I am not so optimistic like Mr. Chidambaram. After the regional elections finish in the 5 states after 2 weeks, the government will have to seriously think of increasing the price of oil in the Indian market. That will be a real tough challenge for the Indian government.
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the condition is reversed in my country ( Indonesia )
high oil prices have negative effect. Prices also went up here, also the dollar ( US ) index.
Posted by: hedgehogman | April 30, 2006 11:18 PM | Permalink to Comment