Global peace is facing challenges due to conflict of Russia-Ukraine. The war going on rather Special Military Operations by Russia majorly impacted many countries worldwide. There is significant impact of same on Indian economy as well.
India imports vegetable oils, machines, fertilizers, chemicals from Ukraine. India is the largest importer country for Ukraine. It imports crude oil, precious metals and stones, mineral fuels, weapons etc. from Russia. Due to present conflict various items which had been imported from Russia and Ukraine will be seriously impacted. And the prices of same in domestic market will shoot up due to shortage of supply on account of no imports can be done. As the prices of crude oil have increased it is but natural that diesel and petrol prices will increase. The result of same will impact the pockets of Indian consumers negatively in near future. This will ultimately lead to inflation globally as well. Merchandise imports may cross USD 600 billion in financial year 2022, which is up against USD 492 billion in first 10 months. Economic growth of India is likely to slow down in the long run. The exchange rate will decline if the war prevails at same pace. As the sanctions against Russia will also impact the India’s preparedness because approximately 50% of its weapons are of Russia origin. Global economy has been affected due to war with stock market going down and also the rates of gold has also hiked worldwide. Indian economy has also been affected and if the war prevails affect will be more.
Not only above sectors Auto sector of India is also affected from the conflict of Russia and Ukraine. As India imports metals from Russia to be used in auto sector or industry, the sanctions imposed on Russia will impact or ban the imports. So Indian auto sector will be affected in terms of increased costs and decreased supply.
As the Russian banks have been banned from SWIFT (Society for Worldwide Interbank Financial Telecommunications) and from making transactions in American dollars, India’s bank SBI also imposed restrictions of not processing any transactions with Russian banks.
Main impact of Russia – Ukraine conflict on Indian economy will be inflation due to which major sufferer will be common people.
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