Economic Advisory Council to the Prime Minister (EAC-PM) Chairman S Mahendra Dev has said that India should identify and track key economic vulnerabilities - especially in sectors like energy, food, fertilizers, metals, and critical minerals - and take proactive measures to manage supply disruptions and price fluctuations to mitigate the impact of future West Asia-like crisis.
Dev said ongoing turmoil in West Asia highlights the need for a forward-looking approach to risk management. According to him, it is necessary to substantially reinforce physical safeguards, including an expansion of strategic petroleum reserves and the creation of stockpiles for essential commodities, going beyond the conventional reliance on foreign exchange reserves and foodgrain stocks.
Since the beginning of the war in West Asia on February 28, crude oil prices soared up to $126 per barrel, from about $73 before the war. He said reducing excessive dependence on imports is critical. He stated this can be accomplished by diversifying supply sources and trade routes, alongside more strategic and effective utilisation of free trade agreements. He noted that over the medium term, the most sustainable solution lies in addressing structural dependence on fossil fuels.
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