IFFCO Managing Director Dr U S Awasthi has expressed concern over falling crude prices. Crude has of let seen a free-fall in the international market with the last price at $ 53 per barrel as reported on Tuesday.
Sounding an ominous note Dr A wasthi says that the issue is further compounded by the crashing sensex which touched a new low on Tuesday. Nifty at the National Stock Exchange fell 251 points (3 per cent) to close at 8,127.
Voicing his concern Dr. U S Awasthi tweeted “Oil prices are falling , Sensex is crashing . Are we heading for major slowdown in international and domestic economy? I think yes.”
Supporting Awasthi’s point , the daily Indian Express quotes that even as the falling price of crude oil is considered a silver lining for the Indian economy, Indian economy cannot be impervious to world economy.
In India, foreign institutional investors pulled out a net Rs 1,570 crore from equities, but the fall was cushioned by domestic institutional investors who pumped Rs 1,189 crore into the market.
Experts said that while India could only gain from low crude prices, Brent going under $ 55 per barrel reflected a deficient demand, the result of a slowdown in global growth.
“If there is a global slowdown, India too will get impacted. There will be no tailwinds of global growth and foreign flows, and it will be more up to us to create growth generators,” said a former deputy governor of RBI.
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