A war which was supposed to be over within a week has entered in the second month. The main worry is that trends towards globalisation are being challenged. The concept of a free world economy and the world as a global village is in danger. The war is now impacting the stability of the global order as many countries are facing food and energy shortage. The conflict, if continues for a longer period, will further hit supplies of major raw materials, including crude oil, natural gas, food, fertilizers, and metals. Rising international commodity prices is the biggest risk emanating from the ongoing conflict as Russia and Ukraine are global suppliers of key commodities. There are disruptions and the geopolitical tensions have sent oil prices spiraling raising concerns of a hit to India's economic recovery also. India may not have a significant merchandise trade with Russia, nevertheless, it stands to lose economically due to supply disruptions caused by USA and Western sanctions.
This story is from the April 2022 edition of Indian Economy & Market.
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This story is from the April 2022 edition of Indian Economy & Market.
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