New Delhi, June 15: Dr. Ranjit Mehta, CEO and Secretary General of the PHD Chamber of Commerce and Industry (PHDCI), stated on Monday that the US-Iran deal is a welcome decision. It will aid in restoring supply chains and managing fiscal deficits and inflation.
In an interview with a news agency, Mehta highlighted that over 80 percent of India’s crude oil is imported. This deal is expected to lower the rising prices of crude oil. Additionally, it will help control inflation and stabilize fertilizer prices amidst fiscal challenges.
He further noted that the deal includes provisions for the uninterrupted passage through the Strait of Hormuz, which facilitates approximately 20 percent of the world’s crude oil supply. If this route remains open without disruptions, it will ensure a steady supply of crude oil globally for an extended period.
Mehta commended the government’s effective management of supply chains during crises, which has resulted in a lower increase in energy prices compared to other countries.
According to the PHDCI CEO, the US-Iran peace agreement will have a positive impact on the country’s economy. A decrease in crude oil prices will lead to reduced demand for dollars, contributing to stability in the Indian Rupee against the US dollar.
He also mentioned that this peace agreement fosters a positive environment, which has been reflected in the Indian stock market, closing in the green.
Global stability signals contributed to a strong closing for the Indian stock market. By the end of the day, the Sensex rose by 736.38 points or 0.97 percent to close at 76,264.33, while the Nifty gained 231 points or 0.98 percent, ending at 23,853.90.
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