Russia and Ukraine are involved in a war-like situation and the world economy is reflecting the tension caused by military action between these two neighboring countries. History has taught us that financial markets tend to recover after the war ends and yet it is difficult to predict where the current situation will affect traders in India.
Russia and Ukraine control less than 2% of global trade, but they are considered a major player in the commodity markets of palladium, natural oil and wheat. A report released by State Bank of India economists said that this particular conflict could have short-term but far-reaching effects on exchange rates, crude oil prices, etc. SBI facing sanctions from western countries Transactions closed with Russian entities has also taken steps to
But common traders using online platforms like XProMarkets are wondering why India is not moving to resolve this conflict? To help our readers understand why we have listed 5 major reasons below.
1. A few days ago, Indian Finance Minister Nirmala Sitharaman spoke about the Russian invasion of Ukraine’s land. shared concerns Was. He said that this not only threatens global peace but can also create financial challenges between India and Russia. He also said that the Indian government would closely monitor the developments between Russia and Ukraine.
2. India and Russia have always had close relations from a business point of view. India imports more than 80% of its crude oil from other countries. Recently, Indian Oil Corporation rejected the cargo of Russian crude oil, which has led to a sharp rise in crude oil prices. The bilateral trade between India and Russia between 2020 and 2021 was about US$ 9.4 billion.
3. Although it may seem that the economic pressure for the Indian markets is too much. But with higher remittances and services exports, our country may face the prevailing situation and rupee volatility. However, it is still difficult to predict what the market bottom will be at the moment.
4. The present scenario is a perfect opportunity to build India’s future. If the ruble-rupee trade is reactivated, the Indian economy will become Russia’s preferred supplier to support the gap in its economy.
5. Analysts believe that Russian investors should be welcome to invest as all other Western markets have closed their doors on them due to sanctions.
XPro Markets Online investors who use it can also find it a safer and more rewarding experience. For all these reasons, India has not taken a tough stand in the Russo-Ukraine war.
read this also – Click to read the news of your state / city before the newspaper