Assocham Reports India Can Maintain Growth Amid Rising Crude Oil Prices
India can sustain growth despite crude at $90-100 per barrel: Assocham
Business Standard
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India is poised to sustain economic growth even with crude oil prices reaching $90-100 per barrel, according to the Associated Chambers of Commerce and Industry of India (Assocham). Historical data shows that India has previously thrived during high oil prices, supported by strong consumption and government infrastructure spending.
- 01India's GDP growth remained robust at 7.6% in 2022-23 despite oil prices averaging $93 per barrel.
- 02Assocham projects India's GDP growth will exceed 7% in 2026-27, bolstered by consumption and capital investment.
- 03The country has shown resilience to oil price shocks, maintaining growth even when prices were above $100 per barrel.
- 04Inflation in India remains low, with a 0.19% increase in the Consumer Price Index in March 2026.
- 05India's economic stability is supported by strong foreign exchange reserves and diversified revenue streams.
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The Associated Chambers of Commerce and Industry of India (Assocham) has stated that India can sustain its economic growth despite crude oil prices reaching $90-100 per barrel. Historical analysis from 2000-01 to 2025-26 indicates that India has experienced strong growth even during high oil price periods. For instance, in 2022-23, the country's GDP grew by 7.6% while oil prices averaged $93 per barrel, and for 2023-24, growth is projected at 7.2% with oil prices at $82 per barrel. Assocham's president, Nirmal Kumar Minda, emphasized that consumption drives growth, supported by government infrastructure spending, which mitigates external shocks. Notably, even during the high oil prices of 2011-14, GDP growth remained between 5.2-6.4%. The report also highlighted that India's inflation rate is relatively low, with a 0.19% increase in the Consumer Price Index in March 2026 compared to February 2026, lower than inflation rates in advanced economies. Assocham concluded that India's macroeconomic resilience, built through diverse revenue streams and fiscal policies, allows it to absorb crude price shocks without hindering economic growth.
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India's ability to manage high crude oil prices without compromising growth means that consumers may not face significant price increases in essential goods, helping to stabilize household budgets.
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