India on the path of economic recovery even as Russia-Ukraine war nears Day 100

Here's how India tackled the economic uncertainties caused by Russia-Ukraine war.

It was hard to speculate that the Russia-Ukraine war would have such widespread economic consequences across the globe. It's been more than three months and the war is going on seamlessly, impacting global trade.

In April, the World Trade Organisation (WTO) revised down its forecast for global trade growth this year to 3 per cent from 4.7 per cent because of the impact of the war and it also warned of a potential food crisis. But most companies and businesses have now found ways to overcome hurdles caused due to the war.

In an exclusive conversation with India Today TV in Davos recently, Birla Group Chairman Kumar Mangalam Birla, said, "Inflation is a global phenomenon, prices are rising not just in India but in many countries. Our government is reacting very fast. They have taken many steps to rein in inflation. I am very positive about India's growth. India is the fastest growing economy."

As the world witnessed the Russia -Ukraine war, Indian traders, especially those involved in the export of pharmaceuticals, telecom instruments, groundnut, ceramic, iron and steel, tea, chemical and import of vegetable oils, petroleum, fertilizers, inorganic chemicals, plastic and plywood and allied products had sleeplessness nights.

Pharmaceutical companies—Sun Pharmaceuticals and Dr Reddy’s Laboratories have production facilities in Russia and offices in Ukraine. Pharma companies dealt with volatility in active pharmaceutical ingredient (API) prices.

Indian pharma industry depends on imports for 90% of its API needs and with sanctions imposed on Russia supply chain was badly hit.

Data from the Pharmaceuticals Export Promotion Council (Pharmexcil) showed that in 2020-21, pharma exports to Russia and Ukraine amounted to $591 million and $181 million, respectively.