Mideast High Crude Prices Could Hit India: Assocham .

New Delhi: Industry body Assocham Wednesday said the rising global crude oil prices and fewer supplies from the strife torn Libya may slowdown India's economic growth.
     
"Higher crude oil prices could slow economic growth as the world is recovering from the worst recession in decades. India's industrial sector could be hit as global oil prices advance towards fresh highs after violent protests in major producer Libya threaten to disrupt crude supplies," said Assocham.
     
India imports nearly 70 percent of its crude oil demand.
     
Libya is Africa's fourth largest oil producer and is a member of the Organisation of the Petroleum Exporting Countries (OPEC), the cartel that produces about 40 percent of global supplies.
     
Presently, the country is facing an unprecedented revolt against Muammar Gaddafi's 41-year rule.
     
The political unrest has swept the oil prices at two-year highs with Brent North Sea crude for delivery in April up 22 cents at USD 106 per barrel.
     
Assocham President Dilip Modi also expressed concerns over rising inflation which could impact investments in India.
     
He said the high food and energy prices are driving the inflationary pressure even as prices of non food manufacturing items have remained relatively stable.
     
"The direct fall out of this persistent skewed trend is postponement and cancellation of capacity expansions plans in the industrial sector", he said.
     
The ongoing political unrest has swept the key oil producing Middle East and North African region, including Libya, Bahrain, Yemen, Morocco and Iran.

Source : biz.zeenews.com