Publish Date: | Fri, 25 Feb 2022 10:32 AM (IST)
Russia Ukraine War. Due to the ongoing war between Russia and Ukraine, there has been a fall in the stock markets around the world. In such a situation, in the coming time, it can also affect your pocket. Significantly, the Russian army has entered the border of Ukraine and Russia has attacked with the help of missiles and other weapons. However, angered by this move of Russia, countries like America, Britain, Germany have imposed limited sanctions on Russia. At the same time, it is also feared that due to the Russia-Ukraine war crisis, inflation may increase in India in the coming days.
India’s trade relations with Russia and Ukraine
To understand the impact of the Russo-Ukraine war on India, one has to first know how India’s relations are with these two countries. In fact, India has good trade relations with both Russia and Ukraine. Every year thousands of students from India go to Ukraine for medical studies. On the other hand, along with students in Russia, there are also employed Indian people. According to the Indian embassy, there are about 14,000 Indians living in Russia, of whom about 5,000 are students. At the same time, there are 500 businessmen.
First effect on oil prices due to war
Due to the ongoing war between Russia and Ukraine, the biggest impact will be on oil prices first and it will also have a direct impact on India’s economy. The rise in oil prices may create a challenging situation for the Indian economy. Although Indian Finance Minister Nirmala Sitharaman has also agreed that there will be no difference in business directly, but the effect of rising oil prices can affect India’s economy. The price of crude oil has reached $100 per barrel and it is feared that after the assembly elections, oil prices in the country can be increased by up to Rs 10.
India imports 85% oil
India imports 85 per cent of its oil requirement. Most of it is imported from Saudi Arabia and America. Along with this, India also buys oil from Iran, Iraq, Oman, Kuwait, Russia. If the situation of continuous war persists, then in the coming days oil prices may rise again. In the current situation, oil prices have reached an 8-year high.
Inflation may increase in India
It is important to note that oil prices are directly affected by inflation. It will also have a direct impact on the prices of vegetables and essential commodities. Experts say that petrol prices have not increased for one and a half months, but in the meantime there has been a jump of 15-17 percent in international crude oil.
India imports these things from Ukraine and Russia
Ukraine exports the most refined sunflower in the world. Russia is number one in refined supplies after Ukraine. In the event of a war, sunflower oil in India may come down and prices are likely to rise. Apart from this, India also imports fertilizers from Ukraine. Ukraine also sells some turbines of the Indian Navy. Whereas India imports pearls, precious stones, metals from Russia. Many metals are used from Russia to make smartphones and computers.
Posted By: Sandeep Chourey