Thursday, Oct 23, 2014

Iraq turmoil to push inflation, India expresses concern over safety of citizens in violence-hit region

iraq-m Iraqi citizens leaving the town on Mosul after deadly terrorist attacks left many dead. (AP)
Express News Service | New Delhi | Posted: June 17, 2014 12:01 pm | Updated: June 17, 2014 3:34 pm

The Narendra Modi government has expressed concern over the safety of Indians in Iraq, which is witnessing deadly sectarian violence and a surge of Sunni militants.

The government said it was in touch with the Indian nurses stranded in violence-hit Tikrit town in Iraq and assured every possible help to citizens in the war-torn country.

Following a request by the Indian government, a team of International Red Crescent contacted around 46 nurses in Tikrit and reported back to the Indian authorities about their well being, sources said.

The Indian Mission is also in touch with the Iraqi government and the UN Assistance Mission in Iraq (UNAMI) to ensure the safety of all Indians stranded in the violence-affected areas of that country, they said.

Meanwhile, experts said the advances by Sunni insurgents in Iraq will further push inflation, which rose 6.01 per cent in May, by disrupting the oil export. Increase in crude oil prices is likely to have adverse impact on domestic fuel prices and will add pressure on fuel subsidies.

India’s import bill will also shoot up, widening the current account deficit.

Speaking about the issue, RBI Governor Raghuram Rajan said, “Watching the developments in Iraq. With sufficient reserves and low CAD, India is in a better position to meet external sector challenges.”

Iraq is the second largest oil producer amongst OPEC members, and second largest importer for India after Saudi Arabia. India imported 24.5 million tonnes from Iraq in the last fiscal while 32.5 million tonnes from Saudi Arabia. (With PTI inputs)

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