Not long enough did the world start copping with the pandemic, that Russia-Ukraine war broke out.
This situation is unlike any other conflict worldwide. The differences between Russia and Ukraine were there since 2014.
But, the situation has worsened after the beginning of 2022.
Dispute Between Russia And Ukraine
The Russian military invaded Ukraine on 24th February 2021. Not long after which, explosions were heard at many places in Ukraine.
Furthermore, this invasion is a serious breach of international treaties.
Russia, a military superpower when invaded Ukraine. This resulted in countries like the US, France, Belgium and NATO favoring Ukraine. Also, those in favor of Ukraine will be imposing sanctions against Russia.
Effect Of Russia-Ukraine War On The World
Although the dispute is between Russia and Ukraine, the other countries will surely need to face the consequences as well. These consequences will be both short-term and long-term.
Moreover, serious implications will be on political, commercial and economic grounds. International relations will also be affected, including not just Russia and Ukraine.
Effect Of Russia-Ukraine War In India
Now, India will definitely be affected when talking with respect to the Russia-Ukraine dispute. India has always had good relations with the Soviet Union and now Russia.
Now, it does not matter if India’s relationship with both Russia and Ukraine are good. The war will also affect global trade. And, this will directly affect the trade in India.
Effect On Export-Import Businesses
Additionally, export and import businesses are suffering since the pandemic hit, but if the war pertains, they will keep facing difficulties.
Additionally, it is likely that the other countries will stop trade with Russia or Ukraine or both. So, the economy and business in India will surely suffer directly or indirectly.
Decrease In Capital Flow
Furthermore, the war will influence the capital flow worldwide. Now, as the capital flow will decrease, countries including India will want to invest in their own country than in the foreign market.
Also Read: Russia and India are in Close Talks for Mass Production of COVID-19 Drug
Way Will Result In Inflation
Moreover, the stock market will also face losses. Also, there will be a rise in the price of crude oil, diesel, petrol.
This is because of the inflation that is expected due to the war.
Furthermore, the finance minister recently announced India’s Union Budget. This was before the war broke between Russia and Ukraine.
Hence, the Union Budget is not made keeping in mind the war factors.
The Confederation of All India Traders attended a meeting on Friday. And according to them, this war will affect the recovery process of the Indian economy after the pandemic.