The Chairman of Reliance Industries Ltd (RIL), Mukesh Ambani, has shown faith in India’s economy and said that the country will soon overpower China and become the world’s fastest growing economy in a couple of years.
At an event organised by Brown University in New Delhi,he said that he has known the Indian economy over 3 decades, but this year has been the most remarkable amongst all. This year has set the base for the country to reach the mark of the world’s fastest growing economy.He expressed his views by saying, “2014 has been a wonderful year for India. I have been in the business world and observing it since 30-35 years. The citizens of India have now spoken after 30 years. They have elected a majority government now in 2014, which will prove to be a boon for the country’s economy. The new government has brought a lot of confidence with itself.”
He further added, “The growth rate of India will be boosted only if there is internal stability. With 2014 being a landmark year, India will surely become the fastest growing economy over the globe in 2016-2017 and 2017-2018.”He is hopeful of a brighter future forthe Indian economy and enthused the audience into looking forward to this.
Decreasing Oil Prices
Oil prices in the first half of 2014 have been around USD 110/barrel. They have been consistently dropping since July, and have been below USD 100/barrel since the last 3 months.
Mr. Ambani said that the recent fall in global oil prices has come as a gift to India. “The oil prices had shot up from USD 20/barrel to USD 140/barrel between the period of 2004 and 2014. I have always wondered why they had increased so much. Now,the rates have reached USD 73/ barrel. This is truly a blessing for us. The horizon of USD 60/barrel to USD 70/barrel will the best for our country which imports 85 percent of its energy requirements. If this continues for 2 more years, then Indian economy will have no looking back,” he said.
He believes that if technology and manpower is used in the right direction then productivity will automatically increase. These factors will help India’s economy to grow further.
Beneficial impact on Reliance Industries Limited
Reliance Industries’ Jamnagar manufacturing division has a petroleum refinery and associated petrochemical plants. It is spread across 7,400 acres of land. It refines different kinds of crude oil, including sour crude, sweet crude and hybrid. It also manufactures various grades of fuel.
The fall in the prices of crude oil will reduce the overall cost of refining for the company and thus will prove to be very beneficial for the company.