Gold and crude oil prices in India have risen sharply in response to Russia’s war on Ukraine, and Indian stock markets have plummeted.
New Delhi:
Russia’s war on Ukraine could have serious consequences for the world economy. As a result, gold and crude oil prices in India have risen sharply and Indian stock markets have plummeted.
Already many countries around the world have been severely affected by the corona epidemic. Since Russia has launched a war on Ukraine, many countries have imposed sanctions on Russia. Due to this there is a risk of vulnerabilities such as fuel inflation, inflation, and the chain reaction of market commodities.
What are the rising prices in India due to Russia’s war on Ukraine?
Rising petrol prices
The price of crude oil has crossed $ 100 a barrel, the highest since 2014. Russia is one of the largest producers of crude oil. Petrol and diesel prices in India are at risk of rising sharply in the wake of rising crude oil prices. After 8 years, the price of crude oil has touched $ 100 again. Will rise to $ 125.
Rising crude oil prices have pushed petrol and diesel prices across India to an all-time high in 2021. Oil products account for 25 per cent of India’s imports. India relies on other countries for more than 80 per cent of its oil needs.
Impact on GDP
Rising crude oil prices will have a major impact on global gross domestic product (GDP). Petrol prices are likely to rise to $ 150 a barrel. Global GDP growth is also at risk of declining by 0.9 percent. Similarly, the price of natural gas will rise. Cooking gas and kerosene prices are also likely to rise.
Due to this, India’s GDP will be severely affected.
Inflation of essential commodities
As the price of crude oil rises uncontrollably, the rise in fuel prices, including cooking gas, petrol and diesel, is inevitable. Due to this there is a risk of inflation of other essential commodities such as vegetables and food items.
The top 30 companies in the Sensex are also down
Indian stock markets plummet as Russia launches war on Ukraine The Bombay Stock Exchange benchmark Sensex was down 1,366 points at 55,865 and the Nifty was down 300 points.
The stock market crash has cost investors a few lakh crore rupees. Due to the war investors are scared and take out their investments. Due to this, the price of gold is expected to rise further. Also, the value of the rupee will fall.
Jewelery gold price rises by Rs 864 per razor in Chennai amid Russia’s war on Ukraine. Today, the price of jewelery gold in Chennai is Rs 38,616 per razor and Rs 4,827 per gram, while retail price of silver is Rs 70.60 per gram.
Global economic impact
Russia is a world leader in crude oil and natural gas production, accounting for about 40 percent of Europe’s gas consumption.
In the current context, sanctions have been imposed on Russia, preventing gas from being transported to the European Union via the Nord Stream-2 pipeline via the Baltic Sea. The service will be affected by recent crises and sanctions by European countries
Oil prices have topped $ 100. This inflation is likely to increase further. The price of crude oil on the world stage is likely to cross $ 150.
Stock markets will fall sharply. Asian American and global stock markets will fall sharply.
Ukraine, a food warehouse, is one of the top five corn exporters in the world. As a result, prices of cooking oil, animal feed and soybeans will rise sharply.
Wheat prices rise
Russia is the world’s leading exporter of wheat. Ukraine is also a leader in wheat exports. In this scenario, wheat exports will be most affected in the current scenario. Both countries account for 29 percent of the world’s wheat demand. Due to this, wheat imports from there will go up in countries like Egypt, Bangladesh and Turkey. Thus there is a risk of rising prices for bread, flour, pasta and other wheat products.
Russia is the largest exporter of palladium used in the manufacture of mobile phones. The metal is used in automotive products, dentistry, jewelry making and many other important industries. The prices of goods related to this sector will go up as the environment will be affected by this global export due to the war.