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Published
Feb 28, 2022
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CAIT fears Ukraine conflict will harm India's domestic trade

Published
Feb 28, 2022

Domestic traders’ organisation the Confederation of All India Traders expects the ongoing conflict between Russia and Ukraine to lead to price increases in the Indian domestic market which will harm traders. 

CAIT foresees conflict-driven rising petrol prices driving up logistics costs - Alto Nivel


The war between Russia and Ukraine will significantly harm Indian traders on the road to recovery following the financial effects of the Covid-19 pandemic, CAIT said in a statement on February 25, ET Bureau reported. As many traders and retailers are getting back on their feet following reduced trade during lockdowns and consumer sentiment is strengthening once again, this new hurdle could price to be too much for some Indian businesses to handle. 
 
“The war between Russia and Ukraine is expected to hit badly the Indian economy and the trade to a significant extent,” said CAIT in a statement on Friday, the Press Trust of India reported. 

The increase in gold prices which followed Russia’s invasion of Ukraine will lead to an increase in gold jewellery prices for the spring/ summer festive season in India. This will also lead to a wider price increase of general commodities and fast moving consumer goods in the country. The price hike in crude oil brought about by the conflict will also contribute to this by causing a price increase for petrol and diesel in India and overall inflation driven by rising transportation costs.  
 
 

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