A soldier fights not because he hates what is in front of him because he loves what is behind him.
We all are aware of the conflict between Russia and Ukraine that has been going on for the past few weeks. The ongoing conflict has disrupted the lives of millions of Ukrainians, forcing a majority of them to flee the country in need of shelter.
The entire world has been coming forward to help the distressed Ukrainians. We have seen significant businesses and personalities boycotting Russia in public. This conflict affects the economy of every major country in the world and is bound to Impact the Indian economy in the short run.
Impact on India
An impact on the trade channels around the world will affect the automobile sector in India and the edible oil industry. Ukraine and Russia combine for 90 percent of India’s sunflower oil imports. Prices could see a steep hike if the conflict continues to go on.
India imports 80 percent of its crude oil from foreign countries. Therefore, a disruption in the trade channels worldwide could cause the prices of crude oil to skyrocket.
The ongoing crisis between the two countries can leave a massive dent in Indian pharmaceutical exports. India is the third-largest pharmaceutical exporter to Ukraine, after Germany and France.
Russia and Ukraine account for 2.4 percent and 0.74 percent, respectively, of the total pharmaceutical exports of India.
Sun Pharma and Ranbaxy, the pharmaceuticals giants, have a strong base in Russia. But, with the conflict raging, companies are worried about payments getting stuck and new orders not being placed.
India-Russia-Ukraine bilateral trade
India may not be a significant trade partner with either Russia or Ukraine, but some sectors and commodities could face trouble due to the conflict stretching out.
The bilateral trade between India and Russia amounted to $11.9 billion last year. On the other hand, the bilateral trade between India and Ukraine amounted to $3.1 billion last year, and exports from India stood at $510 million.
India exported goods worth $3.3 billion to Russia, consisting of pharmaceutical products, iron, steel, tea, automobile components, and electronics. On the other hand, India imported $8.6 billion worth of goods from Russia, consisting of crude oil, petroleum products, coal, fertilizers, precious metals, and gold.
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The world is on the verge of facing the consequences of the conflict between the two European nations. While it may not impact the Indian economy in the long run, many sectors and commodities will face severe consequences due to the ongoing conflict.
We wish every Ukrainian strength to fight through the tough times they are facing.