The Russia-Ukraine war will hit Indian industries and crude oil imports from Russia, said PHD Chamber of Commerce and Industry’s Secretary-General Saurabh Sanyal to NDTV.
That comes on the heels of Prime Minister Narendra Modi’s warning that the disruptions of supply chains will significantly impact the global economy in a Commerce Ministry’s webinar.
“The Russian attack on Ukraine and the international sanctions imposed on Russia will have an impact on the supply of crude oil imported from Russia to India,” said PHD Chamber of Commerce and Industry’s Secretary-General Saurabh Sanyal to NDTV.
“Prime Minister Modi himself has spoken about the disruption of supply chains in the international economy,” he added.
The Ukraine conflict has increased supply concerns after aggressive and enhanced sanctions by Western countries on Russia in response to its invasion of Ukraine.
Amidst growing uncertainty in the global economy over the Ukraine crisis and disruption of trade and shipping services following sanctions on Russia, the Brent crude oil futures jumped to within a whisker of $120 before easing back to around $114.
That is all set to significantly increase India’s import bill on crude oil in the coming weeks as the country depends on imports for over three-fourths of its energy needs.
“Due to the international ban imposed on Russia, the supply of engineering machinery and iron ore imported from there will also be affected, and the cost of raw material for Indian industrial units will increase,” said Mr Sanyal.
“It may also have an impact on the steel sector,” he added.