Russia-Ukraine War: India's economy will be affected the most, know how

Russia-Ukraine War: There will be a bad effect on the country’s growth rate and inflation, the government will have to make these efforts

[ad_1]

new Delhi. After the increase in the price of crude oil worldwide due to the Russia-Ukraine War, it is now going to affect the growth rate and inflation of the Indian economy. If this war had an effect on both these factors, then the difficulties of the common man would increase further.

RBI’s Monetary Policy Committee (RBI MPC) member Jayant R Verma says that the conflict between Russia and Ukraine is likely to have an adverse effect on both economic growth and inflation. To avoid this, policy makers need to be alert and take swift action regarding the emerging situations. He said that inflation is more than the target set. However, it is not in a very worrying state right now.

new pressure on the economy
Referring to the challenges before the Indian economy, Verma said that the economy has not yet recovered from the cyclical economic slowdown that started three years ago. Investment has been low during this period and private consumption has not fully recovered from the pandemic. The economy is facing new pressures arising out of geopolitical tensions. Along with this, the inflation rate will have to be kept in the range of 4 percent in the next financial year.

Supply problem facing the world
Verma said that the problem of supply continues in front of the world. The price is increasing even more. How long the supply problem will continue, nothing can be said about it at the moment. RBI had lowered the inflation forecast for 2022-23 after the MPC meeting in February. The average inflation for the current financial year has been kept at 5.3 percent and for the next financial year it has been kept at 4.5 percent.

India all set for taper tantrum
Regarding the taper tantrum, Verma said that India is fully prepared to face this situation. The US Federal Reserve buys bonds worth billions of rupees every month and issues liquidity in the market. Apart from this, the interest rate has also been kept very low. The Federal Reserve will stop buying bonds under a tamper tantrum. This is called the tamper tantrum. The Federal Reserve may also increase the interest rate in March.

Tags: economy

[ad_2]

Read Article in हिन्दी

Leave a Comment

Your email address will not be published.