Impact of Russia Ukraine War on Various Sectors in India
by Darshana Khandelwal
The conflict between Russia and Ukraine has magnified the threat and also made several potential solutions for various economic factors and due to this the financial markets has also been affected and resulting into the difficulties in the life of various individuals in India. Russia is strictly against Ukraine becoming the member of NATO.
Below are the various sectors that have been affected due to the war and have severe impacts in India.
As per the expectations the automobile sector has been hit hard due to the ongoing Putin war on Ukraine. As there is an increase in the prices of oil, shortage of chips and semiconductors and other precious metals has become a big problem in India. As Russia is responsible for producing Palladium which is an essential element to produce sensor chips and memory and on the other hand Ukraine produces neon gas which is helpful in manufacturing the semiconductors such as etching circuit design.
Export of Tea
Russia contributes 18 percent of the share in Indian tea exports and is one of the biggest importers of Indian tea. This problem has arise due to the payment issues by Iran shipments and because of this they are facing difficulty in exporting the tea and the major cause behind this is the conflict going on between Russia and Ukraine.
The supply chain of products such as wheat, corn, barley, seeds, meals and sunflower oil has been affected very much due to the war between Russia and Ukraine. Moreover, the pantry staple products like bread, flour and pasta have become very expensive especially in India due to which the consumers of India are not willing to purchase such staple goods.
The crisis that is going on between Russia and Ukraine has made the prices of base metals much higher in India. In aluminum there is significant rise by 40% in the year 2021 and 20% rise in the year 2022. Nearly 6% of the world’s aluminum is produced by Russia and mined nickel is 7%. Due to this ongoing war there will be a surge in such products and the Economy will be affected on a large scale.
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