It said that a hike in crude oil will lead to further inflation in petrol and diesel prices, which will lead to overall inflation as the manufacturing and transportation cost of the goods will become more costly
The ongoing conflict between Russia and Ukraine is likely to hit the Indian economy and will jeopardise efforts to recover the domestic trade from the COVID-19 pandemic, said the Confederation of All India Traders (CAIT).
The expected rise in crude oil will be the crucial and critical factor, which will force the prices to go upward, whereas the expected rise in gold prices will also participate in a hike in the prices of the commodities, it added.
“The war between Russia and Ukraine is expected to badly hit the Indian economy and the trade to a significant extent,” it said in a statement.
It added that a hike in crude oil will lead to further inflation in petrol and diesel prices, which will lead to overall inflation as the manufacturing and transportation cost of the goods will become more costly.
On Thursday, Russia launched a major military offensive in Ukraine, targeting various cities and military installations that had left the world stunned.
Putin accused the US and its allies of ignoring Russia’s demand to stop Ukraine from joining the NATO and offer Moscow security guarantees and credulously claimed that Russia does not want to capture Ukraine however, Russia will move to demilitarise it and bring criminals to justice.
(With PTI inputs)