The conflict between Russia and Ukraine is expected to hit “badly” the Indian economy and the trade to a significant extent, domestic traders’ body CAIT said on Friday.
The Confederation of All India Traders (CAIT) said the impact will jeopardise efforts to recover the domestic trade from the COVID-19 pandemic.
The expected rise in crude oil will be the crucial and critical factor, which will force the prices to go upward, whereas the expected rise in gold prices will also participate in a hike in the prices of the commodities, it added.
“The war between Russia and Ukraine is expected to hit badly the Indian economy and the trade to a significant extent,” it said in a statement.
It added that a hike in crude oil will lead to further inflation in petrol and diesel prices, which will lead to overall inflation as the manufacturing and transportation cost of the goods will become more costly.
On Thursday, Russia launched a major military offensive in Ukraine, targeting various cities and military installations that had left the world stunned.
Source : Business Standard