Oil prices exerting pressure on economy

Continuous escalation in oil prices is exerting tremendous pressure on the Economy, External Affairs Minister Pranab Mukherjee said.

With oil prices touching 100 dollars a barrel, Mukherjee said the impact of rising petroleum prices on the Economy was a vital area of concern.

"It is one of the major hurdles we face in achieving high growth rate as it means huge resource allocation in our national plan to build our energy stocks," he said addressing a Global Summit of Management Accountants.

The rising external security concerns together with the cost of managing the environmental concerns on global warming are making huge impact on the country's energy security, Mukherjee said.

Pointing out that the 11th Plan had set a growth target of nine per cent, which he said could be attained by increasing competitiveness.

"The crucial areas that need to be addressed for this are education, agricultural productivity, infrastructure development and external engagement," he said.

With an aim to improve skills of the youth, Mukherjee said government has increased threefold the central budgetary support for education.

"The plan outlay on education will go up from 7.68 per cent of the Central gross budgetary support in the 10th Plan to over 19 per cent in the 11th Plan," he said.