Impact Of  UKRAINE-RUSSIA War On Indian Economy

Russia-Ukraine Conflicts

 As Russia’s invasion of Ukraine enters its third week on  19 March,2022 the global prices of commodities and fuel have soared to unprecedented levels. Due to ongoing war ,Ukraine has halted exports of raw materials and products while several countries have imposed sanctions on Russia, including the United States (US) and U.K.

Destruction Caused By War

But, how is the war impacting the whole world and your pocket?Due to war , which items will get costlier? Here's everything you need to know.So,which commodities will become expensive in upcoming future?

1.Edible Oil

Both Ukraine and Russia  are among the biggest exporters of edible oils.  India's seventy percent (70%) of sunflower oil exports are from Ukraine.The rising prices of food oils will affect the prices of fast-moving consumer goods (FMCG) products in global markets.

Mustard Oil

2.Foodgrains

Both  Ukraine and Russia account for 29 percent export of the grain in global market, and that's why Ukraine is popularly known as the "Breadbasket of Europe".The ongoing war has halted all exports and prices  and are expected to rise unprecedented as the war continues

Harvesting of Food grains

3.Corn

Also ,Ukraine is one of the biggest exporters of corn across the world. Exports via air freight , ports and  land routes have reached a screeching halt and which  has  impacted shipments. Subsequently, the price of the commodities and  golden cereal has shot up dramatically and threatens the food security of millions all around the world.

Corn In The Indian Economy

What will be impact of  war on  the prices of metals?

All across the world ,Russia is one of the biggest exporters of rare metals such as,  gold, platinum, palladium and nickel.Severe sanctions by West on Russia have stopped the metals from reaching the global market which is shooting up  the  prices and raising fears over metal shortage.On the London Metal Exchange ,the prices of nickel have shot up to $100,000 a tonne . The prices of steel are also rising as the war is going on.

Aluminum Production

What will be the impact of war on crude oil prices?

Currently the crude oil prices are hovering at over $100-mark  and further escalation of ongoing war will lead to a rise in prices of  petrochemical products and petroleum .India is the world’s third-largest oil consumer, behind US and China and the surge in prices is bound to hurt to every Indians.

Rising Oil Prices
What will be the impact of war on travel?

 Over 40 percent of India's  oil needs is fulfilled by imports. With the ongoing  rise in crude prices, ultimately ,it will also lead to an increase in  diesel and  petrol prices in India. Due to this ,the air fares are also expected to be affected around the world.The COVID-19 had grounded all flights and had impacted the airline industry globally. As the COVID-19 restrictions eased up and cases are reducing the industry was very optimistic of a slow recovery.

Air Travel

However, the  ongoing war and its consequent impact on crude oil prices will ultimately  transfer to the passengers, making air fares expensive.