The global economic fallout from the Russia-Ukraine war is set to negatively affect the Indian economy according to the International Monetary Fund.
“The global economic fallout of the war is expected to negatively impact India’s economy through a number of channels, which differ from those impacting the Indian economy during Covid-19,” Gerry Rice, IMF’s director of the communications department, said.
The rising oil prices could lead to inflation and increase in account deficits. Moreover, there is the question of tightening financial conditions and greater uncertainty which could affect the global demand and fiscal positions through increased borrowing costs and lower confidence.
Highlight by Aman Agarwal.