The Ukraine-Russia war is likely to hit the Indian economy, resulting in inflation, and rising prices, experts said.
So many casualties, building damaged, charred bodies on the streets. Large-scale destruction by Russian forces in Ukraine has left the world horrified. The war will spell doom for the Indian economy. Diesel and petrol prices have gone up by almost Rs. 6-8 liters over the past one week.
From high fuel prices to vegetables- the common people of our nation are set to bear the war’s impact on the economy. When a citizen of a country pays more for fuels, they tend to cut on other items of need. Demands for goods and services will go down once the country curbs spending. This will affect the import activities, manufacturing, and construction sector.
The automobile industry has also announced a price hike from April 1 because of a hike in raw material and logistics coupled with the current geopolitical situation. An increase in the price of accommodation such as aluminum, steel, and other commodities along with an increase in the cost of raw materials are also supporting the price rise.
Below are the announcements:
- BMW will increase prices for its base models by 3.5 percent
- Audi will increase prices for its base models by 3 percent
- Toyota will hike prices for its base models by 4 percent
- Mercedes-Benz will increase prices for its base models by 3 percent
- Tata Motors will increase prices for its base models by 2-2.5 percent
- Toyota Kirloskar will increase prices for its base models by 4 percent
Russia is one of the top three suppliers of oil and gas in the world. The UK and US and some parts of Europe banned Russian oil which impacted the world. India imports about $1 billion of oil from Russia through import bills is over $82 billion.
Vegetables and fruits prices are the first casualties of the fuel prices. Higher transportation costs result in increasing fruit and vegetable prices. It already has increased by 10 to 20%.
Oil prices in our country have seen an increase, sunflower oil by 4 percent in February, and mustard oil by 8.7 percent. Russia produces 60 percent of sunflower oil.
Final Words
The reason behind the hike in price is the Russia-Ukraine war and the sanctions imposed on Russia by other countries. India depends on international crude supply and it impacts Indian consumers. India ships 90% of its oil requirements from overseas markets.
With the ongoing war between Russia and Ukraine, India can be impacted more than anyone imagined.
