Russia-Ukraine war will hurt India the most: Nomura

MUMBAI: The Indian economy, which is recovering from the Corona epidemic, is reported to be hit hard by the Russia-Ukraine war. Nomura, a Japanese financial company, said in a report that the Russia-Ukraine crisis would hurt India the most. The Ukraine crisis will increase inflationary pressures and India will suffer the most in Asia.

Rising food and oil prices will have an adverse effect on Asian countries, the report said. The financial position of these countries is not strong. India has raised its fiscal deficit target for the current financial year to 7.5 per cent of GDP. For the next financial year, the estimate has been kept at 7.5 per cent.

Nomura said it would have the worst impact on the economies of India, Thailand and the Philippines in Asia. India is a major importer of crude oil. In such a scenario, a price increase would widen the trade deficit. Nomura estimates that a 10 per cent rise in crude oil will reduce GDP growth by 0.50 per cent.

It is believed that the Reserve Bank of India may soon take a tough stance to curb inflation. The Reserve Bank estimates that the average inflation for FY 205-2 will be 7.5 per cent. RBI may raise repo rate from June Nomura says Reserve Bank may raise repo rate from June. It estimates that the Reserve Bank may raise the repo rate by 1 per cent this year.

Petrol-diesel Rs. Cooking gas is expected to go up by Rs 10

Petrol and diesel prices have been stagnant for almost two and a half months in five states, including Uttar Pradesh. On the other hand, the price gap between the global price of crude oil and the petrol-diesel sold in India has widened. Industry sources said the price difference, which is Rs. More than 10, it could increase after the elections are over next month.