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Russia-Ukraine Crisis: How India's Bilateral Trade Is Being Affected?
|When Russia ordered troops into Ukraine, the global stock markets plunged and the commodities market for wheat, oil and gas tumbled. Asia would be the worst affected continent since maximum countries are net oil importers.
Geopolitical conflicts leave a lasting impact on the bilateral trade relations amongst countries. Currently, all eyes in the world are looking towards the Russia-Ukraine war and India, which has kept silent on the issue, is facing tense situations concerning trade. The finance minister Nirmala Sitharaman said that the government is worried about the bilateral trade with Russia and Ukraine due to the conflict. In 2020, India recorded imports worth $1.47 billion and $1.6 billion in 2021 from Ukraine. India produces only 50,000 tonnes of sunflower oil, and the rest is imported, mainly from Russia and Ukraine.
Comprehensive Assessment Of Exports By India
Sitharaman was quoted saying, "We are rightly worried about what comes from there, but I am more worried about what will happen to our exporters who are doing very well, particularly the farm sector, to Ukraine and Russia", LiveMint reported. Moreover, she said that the government would also undertake a comprehensive plan assessment on the major exports from India to the fighting countries and consider the money already paid for the shipments.
Impact On Wheat Production
When Russia ordered troops into Ukraine, the global stock markets plunged, and the commodities market for wheat, oil and gas tumbled. Moreover, as the supply chains get blocked, Asia would be the worst affected continent since most countries are net oil importers from the Middle East and the United States. Ukraine is often called the 'breadbasket of Europe' for its massive wheat production. Therefore, the crisis would also impact wheat production in East-European countries, thus cascading onto other countries in the world.
Therefore, India could expect a rise in petrol prices and edible oils amongst several other commodities. On the other hand, there is a slight chance that after the supply chain block from the eastern countries off Russia and Ukraine, the European and the middle-eastern region could look towards India to compensate, thus giving India a chance to boost its exports.
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