New Delhi, Jun 18 (KNN) The Iraq crisis leading to fears of disruption in oil supplies had a huge negative impact on the Indian economy with the Rupee coming under pressure against US dollar. While it could be a good news in short term for exporters, the prolonged problems in Iraq could dent the prospects of economic revival in India.

The rupee today hit a low of 60.43 against the US dollar with intensification of Iraqi crisis. The stock market has also come under pressure. Higher import costs could exert pressure on the raw material and hit the revival efforts of the new NDA government.

Brent crude rose above USD 113 per barrel as heavy fighting in Iraq had forced shut-down in that country's biggest refinery. Overseas staffs working on Iraqi oil installations are also fleeing.

Ironically, the setback to the economy is coming at a worse time when Indian economy is battling slowdown and facing deficient rainfall this Monsoon season.
Exporters’ body, FIEO expressed concern over the geo-political developments in the Middle East and their low-down on the economy. (KNN Bureau)