new Delhi. Russia has finally started attacking Ukraine. India is likely to be affected by the increase in global fuel oil prices with the declaration of war, which will increase inflation and increase the current account deficit.
Brent crude broke the $100 per barrel mark due to Russia’s military action in Ukraine. Economists feel that the disruption in the supply chain will also put pressure on the rupee. “If Indian crude oil averages US$100 a barrel by FY 2022-23, the current account deficit could rise to 2.3-2.5% of GDP,” Aditi Nair, chief economist at rating firm ICRA, told Mint.
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Current Account Deficit is the difference between the country’s overall foreign receipts and payments. The current account deficit is estimated to touch 1.9 per cent of GDP in 2020-21 as against a surplus of 0.9% of GDP.
Nair said the impact on inflation would depend on when and how much retail selling prices are hiked and excise duty cut or not. India’s retail inflation reached a seven-month high of 6.01% in January.
Also read- Russia Ukraine War: Investors lost Rs 10 lakh crore, 9 out of 10 shares bled
What is Current Account Deficit
Current Account Deficit is a measure of a country’s trade where the value of the goods and services it imports exceeds the value of the goods and services it exports.
Putin is telling the special military operation
The Russian President Vladimir Putin has finally declared war on Ukraine. However, only special military operations are being told from Putin. They have no intention of occupying Ukraine. The Russian side has blasted many cities of Ukraine. Cruise and ballistic missiles have been fired. The Russian president says that the Ukrainian army should lay down its arms and go back. The Ukrainian army has intimidated Russia and all this is happening at the behest of the Neo-Nazi people.
Tags: GDP, Russia, Ukraine
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