Opportunities emerging from low oil prices were discussed at a meeting called by Prime Minister Narendra Modi with business leaders, bankers and bureaucrats yesterday against the backdrop of global economic turmoil, he said.
Aggressive overseas acquisitions, building strategic oil reserves, stepping up domestic exploration and tying up supplies on favourable terms were some of the suggestions that came up at the meeting, Pradhan told PTI.
India, which is 80 per cent dependent on imports to meet its oil needs, is a direct beneficiary of oil prices slumping from USD 115 per barrel to under USD 50 in last one year. Besides cutting its oil import bill, lower oil prices have also helped cool inflation and cut government's subsidy bill.
Participants at the meeting suggested that India aggressively buy oil and gas fields abroad as low oil prices has not just brought down valuation of assets but also led to distress in some others that had borrowed huge funds when oil rates were high.
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India, world's fourth largest oil consumer, should also tie-up supplies from producers in Middle-East, Africa and Latin America on favourable terms, he said.
Low oil prices have also led to slump in cost of associated services like drilling rigs, which should be taken advantage of for increasing domestic exploration and production (E&P) activities, he said adding more wells should be drilled to find new reserves.
Modi at yesterday's meeting urged Indian industry to take risks and make investments for the good of the nation.
The meeting took place amid China's slowdown threatening to drag down global growth and investor concerns over the possibility of the US Fed raising interest rates. Indian stocks and currency are among the worst hit in Asia since China devalued the yuan last month.
India, which had in January-March overtaken China to become the world's fastest-growing major economy, saw its GDP slow to 7 per cent in the April-June quarter. The growth rate puts it on par with China as the world's fastest-growing major economy.