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Russia vs Ukraine war impact in Indian economy presentation made by Sachin Pratap Singh

  1. Economics presentation Name :- Sachin Pratap Singh ( BBA,MBA Integrated Students ) Batch -(2021-2025) UPES ,DEHRADUN Topic :- How will Russia-Ukraine war impact the Indian economy ?
  2. Russia vs Ukraine war, impact the Indian economy. • As you know whenever there is an atmosphere of war, it will have an negative effect on the whole world & its consequences are also seen in different sectors. • inflation in crude oil . • petrol, diesel prices. • taxes, such as state tax, central tax etc. • inflation in transportation. • inflation in daily goods items Cooking oil, milk, domestic cylinders, tea Coffee etc.
  3. These Five Sectors Have Been Hit In India By Ukraine-Russia War (1) OIL SECTOR Russia is the third-largest exporter of crude oil globally. With the Russian invasion of Ukraine, the crude oil prices soared to a seven-year high of $110 per barrel. India imports 85 per cent of its oil requirements. crude oil crossing $100 per mark, it will have a negative impact on these sectors. It is also bad for the overall economy as it will increase the government’s import bills.
  4. Crude will be expensive > Rising crude oil prices will our impact our import bills. Whenever fuel prices increases, inflation is increase.  because the rise in transportation cost, hurt a business’s profit margins. But, because of this cost increases of crude oil, which will have an impact on government finance. So, there is direct impact in petrol, diesel prices
  5. This graph shows inflation in crude oil
  6. 2. EDIBLE OIL Ukraine and Russia are the major suppliers of sunflower oil. Between November 2020 and October 2021, India imported a total of 18.93 lakh tonnes of crude sunflower oil Ukraine exported 13.97 lakh tonnes . Russia exported 2.22 lakh tonnes of sunflower oil to India. With the ongoing Russia-Ukraine crisis, the demand and supply chain of sunflower oil has been impacted.
  7. 3. Agriculture sector • The Russia-Ukraine region is one of the major exporters for some of the key agricultural products globally. • The region makes up more than 30 %of global trade in wheat, ( 32 % for barley) (17 %for corn) • More than 50% for sunflower Oils, seeds, and meals, The pantry staple products such as pasta, flour, and bread are likely to become more expensive in India.
  8. 4. Automobile sector • Ukraine and Russia are amongst the major chip exporters globally. • while Russia supplies the semiconductor industry with important metals such as palladium, Ukraine supplies special gases such as Neon and Helium which are required for chip making. As the ongoing war between Russia-Ukraine escalates, the semiconductor industry is going to bear a massive brunt, with chip-dependent sectors such as the automobile and the IT sectors getting hit badly. Even before the crisis, the world was facing a semiconductor shortage The prices for neon gas have surged 10 times, which will potentially impact the manufacturing ofautomobiles in the Asia-Pacific region.
  9. 5. Base metals • The prices of base metals are likely to move higher amid the ongoing Russia-Ukraine crisis. • Russia produces around 6 per cent of the world's aluminium and 7 per cent of mined nickel. • Used in stainless steel and batteries for electric vehicles, nickel, is up around 20 per cent this year having risen 25 per cent in 2021. So, those things which are used with copper these things prices will be increases such as electrical equipment , copper wire etc.
  10. • What is exchange rate? The price of a country's money in relation to another country's money. Ex. the exchange rate of the Indian rupee in terms of the US dollar is approximately is 1 US dollar = 74.12 Indian Rupee. This means that if you want to buy a dollar from Foreign Exchange Market using Indian Rupee, you will need 74.12 rupees. Affect the exchange rate
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