India's Finance Ministry flags Brent at $89.74 could widen deficits
Business
India's Finance Ministry just flagged that rising global oil prices, thanks to ongoing Gulf tensions, could put extra pressure on the country's fiscal deficit and current account balance.
With Brent crude now at $89.74 a barrel and India relying heavily on imports, higher fuel costs might mean more inflation and a wider current account deficit.
El Nino risk, India's foodgrain buffer
The Ministry also pointed out that an El Nino weather shift could hit farm output and push up food prices.
Plus, global risks might shake up markets and disrupt trade.
On the bright side, India has solid foodgrain stocks as a buffer, and officials are still upbeat about growth ahead, especially with new pushes in tech sectors like semiconductors and shipbuilding.