Amidst surging inflation and weak global economic growth, another slowdown is a possibility, said the Finance Minister, Mr Pranab Mukherjee, on Friday.

“We meet in difficult times. The world economy, just as it was beginning to show some signs of recovery, is facing a renewed uncertainty. Another global economic slowdown appears to be a possibility,” Mr Mukherjee said at the third India-Africa Hydrocarbons Conference, here.

“Business sentiments are down. Food inflation and high fuel costs in times of weak global growth are taking a heavy toll on the economies of many emerging countries, including India,” he said.

“Civil strife in the West Asia has also contributed to the uncertainty and specifically to the rise in international oil prices. The US has suffered an unprecedented debt rating downgrade and is experiencing slow growth and unemployment. Add to it, the sovereign debt crisis in Europe continues unabated,” he added

Underlining the importance of forging partnerships with Africa, he said, “Our energy needs are increasing exponentially, India being the world's fourth-largest oil importer. One-fifth of the country’s oil imports come from Africa.”

In his address, the Petroleum Minister, Mr S. Jaipal Reddy, said, India was looking for more crude oil and gas supplies from African nations. He also said that the Indian companies would be interested in farm-in (equity participation) opportunities in producing blocks, especially in Libya, Algeria, Egypt, and Nigeria. The preferred approach would be to go in a joint venture with African national oil companies.

“Our companies such as GAIL (India), Petronet LNG, and Indian Oil Corporation are interested in sourcing liquefied natural gas on long term basis from Africa and explore possibility of equity participation in liquefied natural gas projects in Africa,” he added.

>heena.k@thehindu.co.in

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