[INDIAN ECONOMIC NEWS] Good morning everyone I am  Rumi Dhar from Kama Group.
Here I have important INDIAN economic news to share with you which is as mentioned
below.

Once upon a time, Indian Prime Minister Narendra Modi promised to plumb the depths of
the ocean and scale the heights of space with Vladimir Putin. Today, Russia’s decision to
invade Ukraine couldn't have come at a worse time for its old Cold War ally.

Because India is facing primarily supply push inflation, rather than both supply and demand
driven price growth as in the West, the Reserve Bank of India may actually have more space
than it seems to play wait-and-see with its policy stance—even given India’s huge
dependence on imported oil. But if the crisis persists, then a significant rise in Indian rates
may be unavoidable, and a further steep selloff in Indian assets could follow. India’s S&P
BSE Sensex has fallen sharply but not disastrously in recent days: about 3% over the past
week.

India’s growth was already slowing before the Ukraine crisis: The economy expanded a mere
5.4% year over year in the December quarter, according to official data released Monday,
widely missing the median broker estimate, which was 6%, according to FactSet.

India’s poor growth has left its central bank with few palatable options to tackle impending
inflation, which is likely to inch upward with oil prices soaring past $110 a barrel as sanctions
mount and supply remains disrupted. India is the third-largest global importer of
oil—importing more than 80% of the oil it needs. The RBI’s 4.5% inflation projection for
fiscal 2023 might prove a bit optimistic even if the disruptions from the Ukraine crisis
fade quickly.




Read more at: https://www.wsj.com/articles/ukraine-crisis-puts-indian-economy-on-the-clock-11646224272


KAMA GROUP
New Delhi
Have a nice day