With Russian troops circling Ukraine’s capital Kyiv, the worsening Ukraine-Russia crisis has sent the global economy in a frenzy with oil prices soaring past the $100 mark for the first time in seven years and stock markets crashing around the world.
Crude oil prices led the way in most impact, with Brent touching $105, European gas prices surging more than 30 percent and the Russian rouble plummeting to a record low against the dollar on 24 February. The Dow Jones fell 1.38 percent and Nasdaq lost 2.6 percent. The crypto market also took a hit, with Bitcoin falling below $35,000.
This crisis comes just as countries had started recovering from the impact of COVID-19 on their economies. And the spike in oil prices is especially worrying for India, which imports more than 80 percent of its oil. These high crude oil prices could result in higher fuel prices for the Indian consumer.
The full-scale invasion of Ukraine by Russia also pushed the Indian stock benchmarks to log one of their worst days in nearly two years, with Sensex and Nifty tumbling 2.5 percent each in opening trade on 24 February.
So how exactly is the Indian economy going to be impacted by this geopolitical crisis? How well placed are we? And if you are a young investor listening in, what should you do with your investment in light of this geopolitical flux?
To understand the impact on the economy, you will be hearing from JP Morgan’s James Sullivan and Indranil Sengupta from CLSA India, a global investment group. And for the young investors listening in, we have Vaibhav Sanghavi from Avendus Capital.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)