Finance Minister Sitharaman has great confidence that inflation tension will end amid war in the Middle East, gave this update on oil prices

News India Live, Digital Desk: The conflict between Iran and Israel in the Middle East (West Asia) has set global crude oil prices on fire. In such a situation, amid fears of rising inflation in the Indian market, Finance Minister Nirmala Sitharaman has assured the country in the Lok Sabha. He clearly said that despite the rise in oil prices at the international level, it is not expected to have a ‘big impact’ on inflation in India. Rise in crude oil, but why is India safe? Answering a written question in the Lok Sabha on Monday (March 9, 2026), the Finance Minister said that by the end of February, the price of Indian basket crude oil was $ 69.01 per barrel, which has increased to $ 80.16 per barrel in the beginning of March. He argued that since India’s current retail inflation rate is at its lowest level, this temporary surge in oil prices will not derail the country’s economy. Words of figures: Inflation situation The Finance Minister presented some important figures in the House, which show the strength of the Indian economy: Decline in retail inflation: Consumer Price Index (CPI) based inflation which was 5.4% in 2023-24. It has come down to 4.6% in 2024-25 and to a low level of 2.75% by January 2026. RBI’s safety circle: According to RBI standards, if oil prices increase by 10%, its impact on inflation is expected to be only 0.30% (30 basis points). Government’s ‘master stroke’ will provide relief. The Finance Minister said that the government Not only relying on global prices, but several administrative steps have also been taken to check inflation: Buffer Stock: A strong buffer stock of essential food items like pulses and onions has been kept ready. Tax exemption: The ‘disposable income’ (spendable money in hand) of the public has been increased by exempting individuals with annual income up to ₹ 12 lakh from income tax. Reduction in interest rates: From February 2025 till now, policy rates have been reduced by 125%. Basis points have been reduced, due to which loans have become cheaper.