Global Situation due to Russia-Ukraine Crises to Impact Indian Economy: RBI

India’s bilateral trade relationship with Russia and Ukraine is not very special, but the way the global situation has deteriorated due to the war between these two countries, it is sure to have an impact on India’s economy. This was stated by the RBI in its monthly report released on Monday. Although India’s fundamental position is very strong and the country also has foreign exchange reserves of more than $ 600 billion, yet due to the turmoil at the global level, the central bank and the central government may have to take many steps.

The state of the economy of the country in the near future will depend a lot on how much private investment is increased. The RBI says that sustainable growth rate can be achieved only through private investment. In the eyes of RBI, inflation is at the first place in the issues which have been considered as a challenge before the economic recovery of the country. In particular, the threat of rising inflation due to increase in imports has been said to be more worrying. Obviously, the reference has been made to crude oil, edible oil and some other genes.

Global economy outlook weak: RBI

The central bank has said that the state of the global economy in the near future looks very bad. One is supply chain is disrupted and second, monetary policy is changing (increasing interest rates). In these circumstances, with the condition of the economy being affected, there is a danger of moving towards economic slowdown due to rising inflation. The good thing is that India does not have much direct trade relations with Ukraine and Russia.

Share of Russia and Ukraine in India’s total exports

Russia’s share in India’s total exports is 0.9 percent and imports 1.3 percent, while the share of Ukraine in the country’s total exports is 0.1 percent and 0.5 percent in imports. In such a situation, India will not have the same effect as European and some other countries, which are heavily dependent on these two countries for their energy security.