It is fair to expect the growth for Q4 between 7.3% to 7.5%, said Subhash Chandra Garg Secretary at Department of Economic Affairs.
The assumed growth for Q4 is about 7.1% to 6.6%, so if it turns out to be higher than that, that is where we might move towards 6.7% for the fiscal 2017-18, he added.
The oil companies take 15 days average. Initially, about 11-12 days the oil prices were going up and in last 2-3 days they have started softening. When the 16th or the 17th day arrives, the higher price will go out of the 15 days calculation and the newer price will come in. So, I would suspect that from now onwards there might be some reduction in the oil prices, he said.
“There has been some moderation in the rupee exchange rate and that also gets reflected. So, hopefully the new prices from now onwards would be somewhat lower than what they have been announcing in the past,” Subhash said.
On fuel excise duty cut he said, “The government has been saying that we are looking at the long term solutions and that requires a study over a period of time of how the oil prices are likely to behave and that does not happen in a day or two. We need to wade during the time of excess volatility, those are not the best times to react immediately. So, that is what the government is doing. I assume the government would come out with how it intends to deal with the oil question in a longer timeframe.”
Read More: Exclusive: Government to announce long-term solution to oil prices shortly, DEA says