Ukraine Conflict’s Impact On Economy Too Early To Estimate, Finance Ministry

The geo-political disaster continues to be evolving and these are early days to make a believable forecast of its impression on India’s economic system within the 12 months forward, confirmed the Finance Ministry’s Month-to-month Financial Evaluation on Ukraine conflict’s Influence.

Western sanctions, together with oil imports embargo on Russia in response to its invasion of Ukraine, has pushed oil costs above $100 a barrel, with crude prices leaping to multi-decade highs at one level.

The evaluation confirmed, the geopolitical tensions involving Russia and Ukraine triggered a large turbulence within the international economic system. Inside days, worldwide costs of crude oil and different commodities shot up escalating the price of India’s import basket.

Its impression on India’s exercise stage in March, if any, could be assessed solely a month later, when excessive frequency knowledge turns into out there. Nevertheless, with the exercise ranges in February not dampening, it’s unlikely that precise GDP of 2021-22 will likely be totally different from the degrees indicated within the second advance estimates, mentioned the report.

The geo-political disaster continues to be evolving and these are early days to make a believable forecast of its impression on India’s economic system within the 12 months forward, the evaluation added.