Ukraine and Russia war – Impact on India

As tensions rise over Ukraine between Russia and the West, the whole world is predicting the negative impact among their nations. When the world is being calm after the series of new variant attacks for two years, it could not tolerate a new war. World economy and growth disturbed because of a pandemic virus. The Middle East is the first region that could face a major negative impact with Ukraine row. India should face an awkward situation in Oil prices, inflation, and External affairs because of Ukraine and Russia war. Global crude oil prices touched 90$ per barrel in the market. This is the highest price after 2014 September in the international market. It reversed the Indian economist's prediction (75$ per barrel). Now, there is an estimation to touch around 150$ in the coming weeks.

Russia has produced 13% of world crude-oil production. The country produces 9.7million crude oil regularly. Russia has a 40% share in the distribution of oil to the world. The United States of America warned Russia on sanctions if later seized Ukraine. So the countries that have trade relations with Russia could face problems. The inflation rate in India was recorded at 6.01 for the month of January. Economists predict that cooking oil becomes more expensive for Indian people if the war is inevitable. India has purchased 1.8 million tones every year, out of that 74% of sunflower oil is from Ukraine. Continuous decrease of Indian rupee value against U.S. dollar is added fuel to fire to the economy.

Russia is the world's largest weapons seller in the world. India is using 50% of its weapons and defence equipment is coming from Russia. India is unable to take a stand in Ukraine row. India has maintained good relations with the West, NATO, and Russia as well. India’s neutral stance has earned the ire of Western nations and Quad. The US, Australia, and India are still part of the very important Indo-Pacific grouping of Quad to curtail China’s expansionist activities. The United States of America forced India to support Ukraine. India was labeled the same when Russia annexed Crimea in 2014, and New Delhi opted for a neutral stance.