The current sky-high price of oil at $50 a barrel has been caused due to stockpiling by various countries, said Ged Davis, managing director, Centre for Strategic Insight, World Economic Forum, in New Delhi on Wednesday.

He added that the price would drop slightly soon. Saying that the stock piling was due to unrest in several countries, Davis, however, ruled out any drastic fall in oil prices, saying it was unrealistic in the present global scenario.

He said that the price would come down to a more reasonable level since the $50 a barrel was not sustainable for any country. He was speaking to the captains of industry at an interactive session organised by the Confederation of Indian Industry.

"Nobody who imports energy will be happy at the $50 a barrel. The challenge for policy makers is to handle the near-term shock of $50 and strategically keeping the long term perspective in mind," he said.

Davis said: "Two scenarios of our energy future challenge current corporate strategies and energy policies. Recent discussions of energy policy have almost inevitably been focused on the short term. The effects of the conflict in the Middle East on oil prices and availability, as well as potential threats to oil supplies from terrorism, require urgent consideration."

"We must not allow our immediate concerns to cloud our vision of the future," he added.

Policies to deal with future energy needs and ensure their sustainability must be set in train now, he commented.

Urging India not to underestimate its fundamental strengths like vibrant democracy, resilience, rule of law, thriving market economy, better legal system and proficiency in English language, Davis said, "If it can open up and support its existing system, India will challenge China." He, however, said that both the countries must learn from each other to maintain its growth momentum.

On outsourcing, he said that it was an emotional issue in most countries and said that in the United States, there was much concern for the loss of jobs. The biggest challenge in today's world was how to become prosperous. "It is a competitive world," he said, and added that it had been extremely important for India, and it will be important for other countries.

Arun Maira, chairman, CII telecom & broadband council, in his address, said that the key to development was for leaders to 'sense and shape what will happen in future.'

Maira said that India was now connecting with the world having shed its introvert image, but the key would be the ability to innovate and power of the spirit, in this global environment.

Maira said that there was a need to look everywhere in the world to learn collectively. The aspirations are rising in India and therefore, "it is not the growth size which matters, but the shape of it," he remarked.

Colette Mathur, director, World Economic Summit, in her remarks, said that there was a noticeable change in the way the world perceived India now. India is now integrating with the world and is seen a vibrant economy, and many companies are willing to come to India for business, she said.

This change was reflected in the response to the upcoming India Economic Summit to be held in New Delhi in the month of December.