Russia-Ukraine War Impact On Indian Economy: Russia’s attack on Ukraine has increased India’s concern. Due to this attack, the price of crude oil in the international market has crossed $ 100 per barrel and has reached near $ 102 per barrel, which is the highest price since 2014.
Expensive crude oil will increase trouble
If Russia does not stop the war between Ukraine, then the price of crude oil may increase further, which will increase India’s trouble. In fact, Russia is one of the largest oil producing countries in the world. Russia supplies 35 percent of its crude oil to Europe. India also buys crude oil from Russia. In the 10 barrels of oil supplied in the world, one dollar comes from Russia. In such a situation, due to disruption in the supply of crude oil, the prices may increase further. Due to which inflation in India can increase tremendously.
There is also talk of imposing economic sanctions on Russia. If this happens, there will be a reduction in the supply of oil and gas from Russia, which will have an effect on oil gas prices. Many commodities including aluminum are supplied from Russia. Due to the disruption of supply, it will have an impact on the economy of the world including India.
India-Russia Business Updates
Russia is one of the major trading partners of India. Apart from crude oil, India imports gas, nuclear plants as well as LNG and many other commodities from Russia. Russia is also one of India’s major partners in the defense sector. As of 31 March 2021, there was a trade of $ 8.1 billion between Russia and India. In which India exports $ 2.6 billion to Russia, while India imports $ 5.48 billion from Russia. By 2025, both the countries have set a target of making bilateral investment of $ 50 billion, while the target of bilateral trade of $ 30 billion has been set.
India has announced a one billion dollar line of credit for development in the eastern region of Russia. Also, in the field of oil and gas, India has invested billions of dollars in Russia. In a way, Russia is one of the major partner countries of India in the energy sector. In such a situation, its effect on the Indian economy can be seen by deepening or prolonging the Russia-Ukraine dispute.
According to energy sector expert Narendra Taneja, due to this dispute, there can be volatile days for the oil market, gas market, all the economies of the world. A sanctions on Russia could deepen the crisis. Commodity prices may increase. He said that it is a matter of concern for India that India has invested billions of dollars in the oil and gas sector of Russia. India has also invested in the Eastern region of Russia. This controversy could have a big impact on the energy economy.
However, one way, the economy of the whole world could not fully recover from the crisis due to Corona epidemic. On account of Russia’s attack on Ukraine, due to the increase in the rising commodity prices, the crisis on the economy of the countries of the whole world including India can deepen.
read this also
The stock market crashed due to the news of Russia’s attack on Ukraine, Sensex fell more than 1800 points to open below 55,500, Nifty fell by 500 points
Crude Price At @ 100 Dollar: Bad news for India, due to Russia-Ukraine conflict, the price of crude oil reached a record level of 100 dollars per barrel