Financial Daily from THE HINDU group of publications
Friday, Mar 21, 2003
Financial Daily from THE HINDU group of publications Friday, Mar 21, 2003 |
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Industry & Economy
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Economy Growth rate will plunge if war prolongs: FICCI Our Bureau
BANGALORE, March 20 THE Federation of Indian Chamber of Commerce and Industry (FICCI) today said that the growth rate could plunge to 2.5 per cent with oil prices shooting up by 45 per cent if the US war with Iraq continues for a longer duration. ``If the war goes on for three months, it is gloom. Because 60 per cent of India's oil requirements is being imported and oil prices will go up by 45 per cent. Our growth rate will drop to 2.5 per cent,'' FICCI President, Dr A.C. Muthiah, said at a seminar on VAT here. Quoting a FICCI research, he said, if the war is a short-term one (i.e., for a week), prices would shoot up by 9 per cent. A good fallout of the war would be the tremendous opportunity for Indian engineering companies in rebuilding Iraq, Dr Muthiah said. "We should be prepared to use Dubai as an entry point for steel and construction companies to supply construction material," he told presspersons on the sidelines of the seminar. ``We should chose Dubai as a ``warehouse'' and move the goods. The opportunity in the aftermath of war is ``fantastic'', he said. He said the international oil prices would drop to $22 to $25 per barrel of brent crude if the duration of the war is short.
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