A sustained rise in global crude oil prices could make it more expensive for India to manage its finances and external trade balance, the finance ministry has warned, flagging the risk that higher energy costs could once again put pressure on the country's fiscal deficit and current account.
In its July Monthly Economic Review, the ministry said India's economy remains on a strong footing, but a prolonged increase in crude oil prices could emerge as a key risk amid continuing geopolitical tensions in West Asia.
