India must reduce dependence on oil: Jayant Sinha

New Delhi, July 26 (IANS) India must reduce its dependence on oil, while focusing to invest massively on renewable energy as any spike in global crude prices adversely impacts economic stability of oil-importing countries due to the increase in production expenses and inflation across sectors, Jayant Sinha, president of Everstone Group and former Union Minister of State for Finance said on Sunday.

Addressing the NDTV Profit Business Leadership Awards event, Sinha said oil prices have now come to play an even more significant role in determining the performance of the Indian economy than the monsoon.

Citing a popular joke in India’s Finance Ministry, Sinha said, “India’s finance minister is the monsoon. Now, “India’s finance minister is oil prices.”

The monsoon was considered to be a significant determinant of India’s economic health for several years. That role, today has been primarily replaced by global oil prices, Sinha remarked.

His comment comes in the backdrop of India witnessing lower-than expected monsoon rainfall this year, while global crude oil prices have soared due to Middle East conflict raising inflation risks, highlighting the importance that oil prices have a major bearing on India’s economy.

Sinha also said that India should position itself alongside long-term global trends in an age of disruption.

While the monsoon is vital for the economy as it drives agricultural growth, controls food inflation, and fuels rural consumer demand, global oil prices directly influence inflation, transportation costs, and the manufacturing prices of nearly all goods.

He said the country must reduce its dependence on China, too, while remaining focused on major investment themes that will shape future economic growth.

Jayant Sinha said India should aim to increase investment to 40 per cent of its gross domestic product to support long-term economic growth. He said higher investment would be important as the country positions itself alongside major global economic and investment trends.

The NDTV Profit Business Leadership Awards are being held to honour some of India’s top business leaders, companies, and entrepreneurs. The awards recognise those who have excelled in leadership and business growth.

The awards will be judged by an independent jury led by Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises. The awards recognise achievements across 12 categories, with winners selected through a two-step process.

–IANS

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