New Delhi: The peace agreement between the United States and Iran is a welcome development that will help restore global supply chains and ease inflationary as well as fiscal pressures, Dr. Ranjeet Mehta, CEO and Secretary General of the PHD Chamber of Commerce and Industry (PHDCCI), said on Monday.
Speaking to IANS, Mehta said the agreement is expected to have a positive impact on global energy markets, particularly for countries like India that depend heavily on crude oil imports.
“India imports more than 80 per cent of its crude oil requirements, and any decline in global oil prices would help reduce inflationary pressures and contain the fiscal deficit,” he noted.
“The agreement includes the reopening of the Strait of Hormuz without disruptions,” he stated.
The strategic waterway accounts for nearly 20 per cent of global crude oil shipments, and its uninterrupted operation would ensure stable energy supplies to countries around the world.
“If the Strait of Hormuz remains fully operational and free from disruptions, it will help secure the smooth flow of crude oil for a prolonged period, benefiting the global economy,” he told IANS.
Mehta also praised the Indian government’s handling of the recent geopolitical crisis, saying that supply chains were managed efficiently despite the challenges posed by the conflict in West Asia.
“As a result, India witnessed a relatively moderate increase in energy prices compared to several other countries,” he added.
The PHDCCI chief further said that the US-Iran peace agreement would have a favourable impact on the Indian economy.
Lower crude oil prices would reduce demand for the US dollar, helping stabilise the rupee against the American currency.
He added that the agreement has also improved overall market sentiment, which was reflected in the strong performance of Indian equity markets on Monday.
Indian benchmark indices ended the day with significant gains amid signs of improving global stability.
The Sensex rose 736.38 points, or 0.97 per cent, to close at 76,264.33, while the Nifty advanced 231 points, or 0.98 per cent, to settle at 23,853.90.
(IANS)
