new Delhi. The war between Russia and Ukraine is expected to severely affect the Indian economy and trade, especially as the Indian market is trying to recover from the Covid pandemic. The expected increase in crude oil due to war will lead to inflation, while the expected increase in gold prices will also cause an increase in the prices of commodities. On the other hand, there is a possibility of weakening of the rupee in this current scenario scenario which will definitely affect the trade balance of India. In view of the current situation, these things have been said by the Confederation of All India Traders (CAIT).
Analyzing the current situation arising out of the Russia-Ukraine War, CAIT National President BC Bharatia and National General Secretary Praveen Khandelwal said that in the current year, India’s total oil imports increased by 25.8 percent. Due to which there has been a steady increase in oil prices. The share of crude oil and allied products in the Wholesale Price Index is 9%. Increase in crude oil will lead to further inflation in petrol and diesel prices, which is expected to increase the prices of all commodities as a whole. Manufacturing and transportation costs of goods will become more expensive. Crude oil is used in the manufacture of plastics, pharmaceuticals, machinery, paints and many other items etc. which will further drive up the prices.
India buys these things from Ukraine
Apart from crude oil, India imports pharmaceutical raw materials, sunflower, organic chemicals, plastics, iron and steel etc. from Ukraine while India exports fruits, tea, coffee, pharmaceutical products, spices, oilseeds, machinery and machinery accessories etc. Is. Russia, on the other hand, is the 25th largest partner in trade with India, exporting $2.5 billion to Russia and importing $6.9 billion from Russia.
Shipments coming from Ukraine feared to be stuck
Bhartia and Khandelwal said traders from India normally make advance payments to Ukrainian suppliers, which are now expected to be stuck indefinitely. If the shipments coming from Ukraine get stuck then it will definitely hurt Indian traders. The expected rise in dollar prices will adversely affect trade with other countries as Indian traders will be forced to pay the prevailing price at the time of shipment. The rise in gold prices will further affect the domestic market. India’s overall trade is expected to be volatile in future.
This demand from the center
The business community of the country stands in solidarity with the government in this time of crisis and will support any step taken by the government to maintain financial stability in the country. CAIT has urged the central government to announce some supportive measures for trade and commerce in the country keeping an eye on the current war between Russia and Ukraine.
Tags: Import-Export, India russia, Petrol diesel prices, Ukraine
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