The imports from Russia include crude oil and minerals of Rs 2,8050 crores, fertilizers (Rs 3,014 crores), vegetable oils and fats (Rs 1,979 crores), rubber and plastic products of Rs 1,464 crores, among others.
Russia’s military assault on Ukraine is likely to have a direct impact on Punjab’s hosiery and bicycle industry.
While the hosiery industry fears delay in payments for its orders, the bicycle manufacturing units may take a hit due to the sudden spurt in nickle prices due to the war.
Prices of nickel increased from Rs 1,750 per kg to Rs 2,070 per kg within hours of Russia announcing an invasion. The prices of steel have also shot up.
Gurmeet Singh Kular, president of Federation of Industrial and commercial organization (FICO) said, “Nickel comes from these countries and it is used by the bicycle and automobile industry of Punjab. Hence, importers have increased the prices within hours of the start of war on the existing stock of nickel..We are dependent on imports for nickel as it is not available in India. So, in a way our domestic market can also be affected if things are not settled soon. Moreover, steel prices in the local Mandi Gobindgarh market have also increased. Steel does not come from these countries, but still local producers are making hay while the sun shines. “
Hosiery industry is directly affected as Ludhiana’s hosiery products are exported to Russia via Ukraine and industrialists have an apprehension of delayed payment for already delivered products.
“Already booked orders will go in a limbo. We have written to the PM Narendra Modi to compensate the exporters if they suffer losses in the longer run,” said Badish Jindal president of All India Trade Forum (AITF)
S C Ralhan, former regional chairman of Federation of Indian Export Organisations (FIEO), said, “We expect the PM to intervene and look into the concerns of exporters after war between those two countries. We are affected in terms of getting payments. We used to get our payments in dollars, but the US has imposed so many restrictions.”
Ranjodh Singh, MD of GS Autos said, “Automobile industry of Punjab doesn’t directly export much to these two countries, but we do supply in Europe. European customers are worried about inflation and there is a panic situation in the entire Europe. We expect oil and gas prices to shoot up now. Erosion of capital after drastic fall in the stock markets world over is yet another reason to worry. Wars are in no way good for the countries and countries like India cannot afford inflation as a large population lives below the poverty line.”
As per the data collected by AITF, the total trade between India and Russia is Rs 70,122 vrores. This includes imports of Rs 51,202 crores and exports of Rs 18,930 crores.
Russia’s total share in India’s exports is 0.80% and in imports is 1.4%.
The major export items are pharmaceuticals worth Rs 3500 crores, electrical equipment and machinery of Rs 3,000 crores, yarn, textile garments and woollens of Rs 900 crores, organic chemicals of Rs 1,900 crores. The imports from Russia include crude oil and minerals of Rs 2,8050 crores, fertilizers (Rs 3,014 crores), vegetable oils and fats (Rs 1,979 crores), rubber and plastic products of Rs 1,464 crores, among others.
“India is having a very negligible trade with Ukraine as the total export to Ukraine are of Rs 2,766 crores which is just 0.12% of total export from India. Similarly, the imports from Ukraine are Rs 14,705 crores which is 0.44% of total imports of India,” said Badish Jindal, president AITF
The major exports to Ukraine are pharmaceuticals, plastic and rubber products, iron and steel.