Oil spiral won't spike growth: Mohan

Economic Affairs Secretary Rakesh Mohan today said India's growth momentum would be maintained despite rising global crude oil prices.

"One thing is clear""we have been able to sustain growth despite shocks," Mohan told reporters on the sidelines of the India-Japan Symposium organised by the Confederation of Indian Industry. "Growth momentum in the economy is going to be sustained (despite high oil prices)," Mohan said.

Mohan also said amendments to the Banking Regulation Act and the Reserve Bank of India Act would be introduced in the Budget session to enable the central bank to lower the mandatory limits on statutory liquidity ratio and the cash reserve ratio for commercial banks.

The Bill will also enable the central bank to lend or borrow securities by way of repo, reverse repo or otherwise.

Speaking at the symposium Mohan said India intended to continue with its 'Look East' policy to strengthen economic ties with other Asian countries.

"India is a latecomer to the Asian party. In 1991, we started the look east policy. The fulcrum of world growth in the next 50 years is Asia. We have to be part of it," he said.

Mohan said, while India will go for WTO plus policies in the bilateral trade deals, the diverse cultural, religious and historical background of the Asian countries needed to be factored in unlike Europe where there was a common cultural system including legal systems.

"We need to work harder in creating trade agreements. There needs to be a lot of work aimed at trade and investment facilitation, harmonising rules, especially in service, common standards and rules of origin. Harmonisation is required but due to different histories it is that much difficult to have common arrangements," Mohan said.