Could Ukraine crisis impact India's trade with both nations?text_fields
New Delhi: As of now everything is alright on trade front between Russia and India; or India's transactions with Ukraine for that matter. Could the invasion cause a tailspin in trade?
There is no telling how long the confrontation could drag on, or if peace be ever settled in Eastern Europe. With USA clamping embargo on Russia, trade front could feel heat in the offing, experts say.
A latest take on the issue anticipates untoward situation in trade. Over the decades, India and Russia shored up healthy trade relations between them, with Russia becoming 25 th trading partner.
Thanks to inking various trade deals over the years, currently India's exports stands at $2.5 billion, while whopping $6.9 billion transaction is no mean feat for Russia either.
Most of India's export to Russia cover pharmaceuticals, tea and mobile phones. And Russia ships to India vital crude oil, coal and diamonds. A snap in the shipment for long could negatively impact India, for sure.
As for Ukraine, India ships to the nation pharmaceuticals and mobile phones worth about$ 374 million, says one report. India imports from the war-facing nation is worth about $2.0 billion products, especially sunflower oil and urea. The duo accounts for one percent of India's exports in the early quarters of this fiscal, according to Indian Express. Reports say that exporters are tarrying to execute orders fearing of being caught in the conflict.
India's exports to Russia, nevertheless US embargo, could go on unimpeded. But a possible UN sanction could have negative impact on exports. Industry analysts are sitting finger crossed for peaceful settlement for the problem.