India will benefit from drop in oil prices, says BJP's Gopal Krishna Agarwal

With Sensex witnessing a record fall on Saturday, BJP said that there was an impact of crude prices and India will benefit by fall in the international price of oil.

BJP spokesperson for Economic Affairs Gopal Krishna Agarwal told ANI that India meets 70 per cent of its crude requirements through import and drop in its prices will be to the country's benefit.

"There is a fight between OPEC and Russia over the oil prices. Therefore, suddenly there is a fall in the oil prices. Ultimately this fall in oil prices will benefit India. Because 70 per cent of our requirement of oil is through imports," Agarwal said.

"Though the capital market will have a tough time because of funds flow. Many investors will try to withdraw their funds to meet their margins but the overall Indian economy will benefit from it. The global slowdown in the economy is an issue but this is temporary phenomena. And this fall in prices will ultimately benefit us," he added.

Agarwal, who has been visiting state BJP units across the country and addressing concerns on the Indian economy, said that fundamentals of the economy were strong. "We also have certain challenges but ultimately many factors affect the economy. This factor will not negatively to our economy," he said.

Indian market witnessed its worst fall on Monday in absolute terms in both Sensex and Nifty.

Crude oil prices tanked over 30 per cent following Saudi Arabia's decision to cut prices and raise production after the talks with OPEC+ countries fell out, marking the biggest price crash since the Gulf War. This led to a crash in the shares of major energy firms in India including Reliance Industries and ONGC that fell up to 12 per cent.

On being asked about the increase in price of Yes bank shares, Agarwal said it was because the market sees that the government was working on the resolution of the problem of the bank.

"Those who manipulated the whole thing are under scanner. SBI has planned to revamp the whole bank. Depositors' money is safe. RBI Governor and Finance Minister have said that the government is resolving the problem. Those who fled the money are under arrest. Their properties are being seized. Lookout notices have been issued. The money of the public is safe and will be returned," he said.

The BJP functionary said the government has been taking action in relation to crisis in Yes Bank and its founder was being investigated.

"All issues related to him are being investigated. People should be happy that the government is working on a plan of the resolution," he said.

"Only people who should be worried are Priyanka Gandhi who had a close relation with Rana Kapoor and his associates They were selling their paintings for 2 crores. This shows that they had certain underhand dealing among themselves," he alleged.