Amid the Russia-Ukraine conflict, India has adeptly managed its reliance on imported oil and urea through savvy diplomacy and fiscal measures. Russia now supplies over 20% of India’s oil, up from 2% pre-war, while urea imports have been stabilized. To cushion rising global prices, India has expanded subsidies for oil and urea, though this has diverted funds from other critical areas like job creation and infrastructure. The government is also focusing on increasing self-reliance for long-term stability.
#IndiaEconomy, #OilImports, #UreaSubsidies, #RussiaUkraineConflict, #EconomicStability
~PR.320~HT.318~ED.155~GR.125~
#IndiaEconomy, #OilImports, #UreaSubsidies, #RussiaUkraineConflict, #EconomicStability
~PR.320~HT.318~ED.155~GR.125~
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00:00As the world grapples with the impact of the ongoing Russia-Ukraine conflict, economies
00:10globally are feeling the strain, especially in essential commodities like oil and urea.
00:17In India, Prime Minister Modi's government has shown fiscal prudence, managing prices
00:21and ensuring stability.
00:23We explore how India navigates the turbulent global oil and urea markets, maintaining economic
00:29balance within the country.
00:36India relies heavily on imports for oil and urea.
00:39With Russia and Ukraine engulfed in war, supply chains have been disrupted.
00:43However, India's diplomatic efforts have ensured a steady flow of both commodities.
00:50Russia is now India's largest oil supplier, accounting for more than 20% of total imports.
00:56Today, we are dependent to the extent of 88% on the foreign market.
01:02And a huge amount of foreign exchange goes out for buying the crude oil from foreign
01:08countries.
01:09The silver lining is that I would say that we came to the advantage of India, the Russia
01:17and Ukraine war, Russia is supplying a lot of crude oil to India.
01:21And that is relatively cheaper if India buys from US, Venezuela or Middle East.
01:29So that comes relatively at a lower price.
01:33And therefore, we were able to save some of the foreign currency as well.
01:38The Modi government's diplomacy has been instrumental in securing these resources, but at a significant
01:44cost.
01:45The Modi government has expanded its subsidy programs to shield consumers and farmers from
01:50the price hikes due to the war.
01:53Urea subsidies have doubled, ensuring that farmers remain unaffected.
01:57It's undeniable that India has depended on Russian fertilizer for years.
02:04That's undeniable.
02:05But I think a lot of the impacts and efforts that Prime Minister Modi has made to really
02:11ramp up things like the nano urea, that's going to make a huge difference in the long
02:17run.
02:19It's undeniable that India depends on Russia, you know, for many things.
02:23I mean, when it comes to oil, when it comes to fertilizer, sure.
02:27But it's really interesting to note that that also is what gives India an interesting sense
02:33of leverage when it comes to Russia, because they are such a large importer of certain
02:38Russian products.
02:40And that is why India has such a geopolitical importance, because when they come to the
02:45table, they are seen as the trusted broker between the two countries when it comes even
02:50at looking at a potential kind of further dialogue.
02:53However, these subsidies come at the cost of other areas like job creation, infrastructure
02:59development and social welfare works.
03:02The government has had to prioritize short-term relief over long-term investment.
03:08This strong push to put a focus on producing, you know, urea locally, nano urea, actually
03:14can certainly help in job creation.
03:16But everything is a trade-off.
03:17Of course, there are things that will be an economic hit in, you know, for a short period
03:23of time.
03:24But the long run implications of some of these schemes actually can be quite beneficial.
03:29But the devil is in the details and in the execution.
03:32It's very important to understand how this is actually going to be, you know, executed
03:37over time.
03:39India's diplomatic ties with Russia and Ukraine have been crucial in securing vital supplies
03:44while diplomacy has helped in the short term, India is also working towards self-reliance
03:49in these critical sectors.