India's Economy Faces A Potential Stagflation Risk From Ukraine War

The Indian economy faces a potential threat of stagflation from the ongoing Russia-Ukraine war, driven by trade disruptions and rising oil prices.

The Indian economy faces a potential threat of stagflation from the ongoing Russia-Ukraine war, driven by trade disruptions and rising oil prices which will push already high inflation further up, which will hurt growth prospects.

Gross Domestic Data released on Monday showed the economy slowed in the October-December quarter, even before the Omicron variant of the coronavirus disruptions took hold. 

The ongoing Russia-Ukraine war is likely to weigh heavily on Asia's third-largest economy, just when the restrictions from the latest coronavirus wave have started to ease across the country.

Finance minister Nirmala Sitharaman underscored the government's concern about the impact on its exports due to the Ukraine crisis.