Managing a crisis: Russia-Ukraine war outbreak a setback for Indian economy

But its impact has been kept under check

A K Bhattacharya
Last Updated at February 23, 2023 22:41 IST

By January 2023, Russia became the top supplier of crude oil to India, with a share of over a fourth of India’s total import needs

In the wake of Russia’s invasion of Ukraine, a year ago, there were fears that the Indian economy would experience heightened uncertainties in at least three specific areas. Dangers of higher inflation would pose new challenges for those in charge of managing India’s monetary policy. The possibility of higher commodity prices, particularly those of crude oil and fertilisers, would threaten the government’s fiscal consolidation plan. And the Indian economy’s external sector, it was feared, would come under pressure because of a rising import bill, even as exports might suffer on account of a likely global economic slowdown.

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