Impact of Ukraine-Russia war on India’s growth perspective: UNCTAD assessment
India's projected economic growth for 2022 has been downgraded by over two per cent to 4.6% by The UN Conference on Trade and Development (UNCTAD) in its Trade and Development Report, a decrease attributed to the on-going war in Ukraine, with India expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability. The on-going war in Ukraine is likely to reinforce the monetary tightening trend in advanced countries following similar moves that began in late 2021 in several developing countries due to inflationary pressures, with expenditure cuts also anticipated in upcoming budgets.
The UN's trade and development body has also downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to the war and to changes in macroeconomic policies made by countries in recent months. The war has put further upward pressure on international prices of energy and primary commodities, stretching household budgets and adding to production costs, while disruptions to trade and the effects of sanctions are likely to have a chilling effect on long-term investment.
