The decision to set up the standing group on economic fallout was taken at a meeting of India's economic think-tank, the Planning Commission, the Press Trust of India (PTI) news agency reported.

The new seven-member panel consists of officials from the agriculture, tourism, energy and industry ministries.

It will provide recommendations to a group of top bureaucrats to avert any adverse impact on the economy, PTI said.

On Monday the Reserve Bank of India said rising oil prices could put pressure on inflation.

India imports around 70 percent of its oil needs from overseas and high global oil prices will increase manufacturing costs and erode profits and competitiveness of exporters.

SPACE.WIRE