4 hrs ago
CII Chief Urges Prudence, Diversification Amid Oil and Rate Risks
R Mukundan, an industry leader, said India is facing several economic surprises.
Oil prices have risen above $100 for a barrel.
More expensive oil can make many things cost more.
He said careful government spending and monetary policies have helped reduce the damage.
India should buy resources from more places and sell goods in more markets.
Businesses also need faster approvals and simpler rules.
Higher interest rates may slow some purchases, but better productivity can help companies.
Mukundan said India needs several energy options, including electric vehicles, renewable power, nuclear power, CNG and liquid fuels.
CII President R Mukundan said monetary and fiscal prudence has helped India cushion economic shocks.
He urged India to diversify resource access and markets as crude oil prices remain above $100 a barrel.
Mukundan said faster, more predictable business processes could offset some effects of higher interest rates.
He called for integrated digital data systems, easier land access and fewer steps for new businesses.
He estimated India’s growth could range between 7% and 9%, while emphasizing the need for energy security.
- Who
- R Mukundan, president of the Confederation of Indian Industry and managing director and chief executive officer of Tata Chemicals.
- What
- He assessed India’s economic outlook and recommended measures to manage high crude prices, possible interest-rate increases, trade risks and energy-security concerns.
- Where
- India and its domestic economy, trade relationships and energy system.
- When
- During an interview; the articles do not provide an exact date.
- Why
- To help Indian industry withstand oil-price shocks, changing technology, higher financing costs and global market risks.
Key facts
- Crude oil price
- Above $100 per barrel, according to Mukundan.
- Growth outlook
- Mukundan said India’s growth could range from 7% to 8.5% or nearly 9%.
- Private capital expenditure
- He said private capex rose from 49% last year to about 69-70% this year, with 16% growth and 20% compounded annual growth.
- Trade diversification
- He recommended diversifying both resource access and export markets.
- Business reforms
- Suggested measures include interoperable digital data, easier land access and fewer approval steps.
- Trade-agreement utilization
- Mukundan said India uses about 40% of available tariff lines, compared with roughly 60-70% for South Korea.
- Energy security
- He supported a mix of electric vehicles, blending, CNG, liquid fuels, renewable power and nuclear power.
Quotes
R Mukundan
CII President and Tata Chemicals MD and CEO
“We have not given up on what I call monetary and fiscal prudence (amid the West Asia crisis). This has helped us cushion the shock in many ways. I think it could have been a much bigger shock had we not done so.”
indianexpress.com
“If I can compress my execution time from 48 months to 36 months, that 12 months saved is actually a big benefit, much more than what interest rates can do.”
indianexpress.com
Sources
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