Indian economy resilient enough to absorb oil price rise: Mukherjee

25 Feb 2011

Finance minister Pranab Mukherjee today said the Indian economy was resilient enough to deal with rising crude oil prices that have shot to a 30-month high.

Mukherjee said the Indian economy has the resilience to deal with the situation when it became extremely aggressive.

He said the government had done it and now it remained to be seen how the government would be doing it. However, he said, the government's response has to be formalised.

Fuelled by political turbulence in the Middle East, oil prices yesterday surged to a 30-month high.

Brent was up over $119 per barrel, while crude prices hovered above $100 per barrel.

The Economic Survey 2010-11, however, stressed that the inflationary pressures at home would increase with the spiralling crisis in the Middle East and rising global commodity prices.