Prakash Ambedkar urges the government to take strategic decisions
Mumbai: Vanchit Bahujan Aghadi chief Prakash Ambedkar has expressed concern over the growing intensity of the Israel-Iran conflict and its potentially serious implications for India’s economy. He has urged the central government to take immediate and strategic policy decisions in this regard.
In a tweet from his official X (formerly Twitter) handle, Prakash Ambedkar stated that the ongoing conflict could significantly affect India’s economy in the coming months. The conflict has already led to a sharp rise in global crude oil prices. India, being the world’s third-largest importer of crude oil, is highly vulnerable to these fluctuations. If the conflict escalates, oil trade may be delayed and export costs may rise further. This could make India’s economy even more unstable. Delays in oil shipments and rising shipping costs would further push up oil prices.
As oil prices surge, Indian refineries will need more U.S. dollars to purchase oil. This will increase the demand for dollars, weaken the Indian rupee, and make imported oil even more expensive. Consequently, India’s current account deficit (CAD) is likely to widen, putting significant pressure on the country’s financial system and economy.
The conflict will also affect the pricing and supply chain of many sectors that are directly or indirectly linked to crude oil. Indian consumers will be hit directly, resulting in an overall negative impact on the economy.
Ambedkar’s urgent suggestions to the Centre:
To tackle this critical situation, Prakash Ambedkar has proposed the following strategic measures for the Indian government:
🔹 Diversify oil contracts:
To safeguard against geopolitical risks in the Middle East, India should diversify its oil procurement sources.
🔹 Cap fuel prices:
To contain inflation, the government should temporarily cap fuel prices by reducing excise duty or providing subsidies.
🔹 Stabilise the rupee:
The Reserve Bank of India (RBI) should intervene in the foreign exchange market to reduce volatility in the Indian rupee.
Ambedkar has underlined the seriousness of the situation and stressed the need for immediate and farsighted policy action to ensure India’s economic stability.
