The war between Russia and Ukraine (Russia-Ukraine Conflict) has erupted. Russia is attacking at least 10 cities in Ukraine from the ground and the sky. According to the report of Reuters, so far 9 people of Ukraine have been confirmed dead in this attack. About a dozen people are said to be injured. Ukraine has also retaliated.
On the other hand, 30 members of NATO have planned an attack on Russia. In such a situation, the fire of this war seems to be increasing. The question is, what will be the impact of this war on India (Russia-Ukraine conflict impact on India)? Let’s try to know the answer.
First of all it is necessary to know that what is the status of trade between India and Russia. Russia’s share in India’s exports is only 0.8 percent, while it has only 1.5 percent in imports. This means that apart from the rise in crude oil prices, this war will not have much effect on India.
Ajay Sahai, CEO and Director-General, Federation of Indian Export Organizations said that as far as trade is concerned, there is not much to worry about. This is because we do not import or export much from Russia. India also does not buy much petrol from Russia.
In the financial year 2020-21, India had exported $2.6 billion worth to Russia, while imports were worth $5.5 billion. India exports most of the pharmaceuticals and electrical machinery to Russia. Apart from these, he also exports tea and clothes. Petroleum products account for more than half of India’s imports from Russia. It imported petroleum products worth $3.7 billion from Russia. This is a very small part of India’s total petroleum product imports of $ 150 billion.
Also read: Russia Attacks Ukraine: Russia Attacks Ukraine, Know What Happened So Far in 10 Points
Brokerage ICICI Securities has said that Russia’s attack on Ukraine will affect India in two ways. This attack will increase the prices of crude, which will increase the retail inflation rate in India. The Reserve Bank of India (RBI) may have to increase the interest rate to control inflation. If the government does not reduce the excise duty to bring down the prices of petrol and diesel, then the RBI may increase the interest rate twice this year.
On the other hand, Europe has a major share in India’s exports. Due to volatility in Europe, demand for steel, engineering goods etc. may increase. India is a big supplier of these things. In such a situation, there will be a big opportunity for India to increase exports. India has been emphasizing on increasing exports since the outbreak of Corona virus. It believes that it is wise to take advantage of the growing climate of mistrust towards China.
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