Topic: Trouble in paradise for India? - page 2. (Read 427 times)

While everyone was having criticising and supporting Ukraine - now we all are in so much trouble.
UKraine did get the support but what about the other world who are suffering with inflation - who are going to help those? Now everyone is in need. What has EU and USA did to the world!

The US may benefit from the sanction the EU placed on the Russians but it somehow affects all of them due because after Saudi Arabia, Russia in the largest exporter of oil in the global market. However, the world is in chaos today because of the selfish and political game of our leader.
The same game is what the Indian government is playing with their citizen by suffering them with the hike in the price of gas while they bought it cheap from the Russia and also make more money by selling it the EU.

I think there are multitude of factors responsible. Failure of wheat crop in India due to excessive heat.  Rising oil in international markets. Rising interest rates globally. India's dependence on oil and yes higher taxes by Indian government.
However india is still faring well than many major economies

India decided that profit is more important than morality, and they've been benefiting from trading with Russia when many others are cutting their ties because of not wanting to sponsor a war. Apparently, this plan was flawed and India will still suffer from the consequences of the war. Well, it's only fair if it does.
The way I see it, if the democratic world (and India prides itself on being world's largest democracy) truly united in a joint action with a radical principle of cutting all ties with Russia, Russian economy would collapse because it is built on selling their products, and largely selling them to democracies. That would exhaust the resources Russia can spend on the war very fast, they'd lose the war, be in a terrible economic position, and then Western countries could demand trial for war criminals and build new economic relations with the new Russia. That could all be over very fast, and that would in the end have had a smaller negative impact on global economy.

USA is always trying to keep countries in their control, But one thing is for sure - if by any means Russia is able to start Ruble trade for the oil and break the petrodollar deal. Than surly Russia will be unstoppable and USA is in trouble.

EU knows Russia won't beg to remove sanctions because it is not the first time the west put sanctions on Russia. Actually, the most benefited from this conflict is the USA. They force EU countries to put sanctions on Russia so that they can not buy fuel from them. Now the USA is selling oil and gas to the EU at a high price. The USA announcing billions of dollars in arms deals with Ukraine. On the other hand, many Ukrainian soldiers are talking about shortages of ammunition and their dire situation on the battlefield. Where are all these weapons going? This is all about the business that the USA and UK are playing with the EU.

Owing Dollars not your own currency is a double burden and downside to strong dollar, hence they have little choice with these interest rate rises.

Both India and China have little to no oil but China at least has the exports to exchange with greater ease for the limited oil and gas.   China is already bound to buy up Russia energy, India wants to process all the worlds oil as I understand it and so profit that way.
   India has GDP growth like China that will remain even under pressure but it has a greater need to gain every year to close the gap towards the western nations with their standing advantage.  Every nation has some comparative advantage and India has the growth of one of the 'youngest' large nations.  They have to find a way to utilize that natural asset to support the currency and nation generally.   Main problem India has is a weak currency and poorly organized trade, I have great faith in their ability to find the best path forward and become far better off then presently as some of that will come from technologys progress also.

USA will try to be hard over India, but it won't be making any big impact. We need to keep USA at the position of India and think, surely USA will try to make the best profit out of this process. Even after buying oil at a much lower price there is a no big change in the fuel price of India. USA will try to give some pressure, beyond certain point India will strike back. Now beyond this India is facing a serious problem that have arisen out of the speech from ruling party spokesperson. This is gonna make India down.

There is so much drama involved in it - why have EU not thought once before putting the sanctions on Russia.
Did they believe that Russia will do as they demand and beg EU to remove the sanction. Russia is the power they have fuel. Now half of the world is in trouble and IND are clever enough to cash this game.

Well India is going to have more problems soon, if they keep on undermining western sanctions, by buying Russian Oil and then refining it and selling it back to European nations.    The US President has already warned them that there will be consequences for their actions, but they are simply ignoring it.

India’s external debt was US$ 570 billion at the end of March 2021. It recorded an increase of US$ 11.6 billion over its level at end of March 2020. The external debt to GDP ratio increased to 21.1% at end of March 2021 from 20.6% an year ago. Source : https://en.wikipedia.org/wiki/External_debt_of_India   (What happens when that faucet is closed) 

Just like what you’ve said, they are selling it on a good price to EU so why they will sell it at a discounted price to their own people while they can have more money if they will sell it abroad? This is how money talks and most probably, sadly those companies are preferred to earn more money. Anyway, India is not the only country who are experiencing high cost of food and petroleum, it looks like this is the problem of many countries as of the moment.

I recently read a thread also pertaining to this situation, India buying at a discount rate from Russia.
And selling it at a very good price in EU after refining it. A very smart move from this country.
With this advantage, they can lower their oil price because they are getting it cheaper because of this war situation.
At least help their countrymen on this aspect. It is understandable if other countries are increasing their fuel prices.
But if India is buying it at a discounted price, why not share this benefit to its people?

There is controversy as to whether post 2020 economies are experiencing growth. Or merely returning to pre-pandemic levels.

It closely parallels the ongoing discussion as to whether global economies truly recovered from the 2008 crisis. A significant percentage of united states economic growth post 2008 was caused by the federal reserve injecting liquidity into stocks and bonds under QE (quantitative easing) programs. A high percentage of claimed economic growth in that era occurred in financial markets and was described by some as merely representing an expansion of the fed's balance sheet.

It is possible that global economies have been caught in a bubble since the 2008 economic crisis. And later the global pandemic crisis. I'm certain we've all heard plenty of doom and gloom of the past 10 years predicting disaster. Its nothing new under the sun.

I for one have to admit current era markets and economies are much more robust and durable than expected. India itself is no exception. I thought india's economy could be devastated by their rupee recalls. Tensions on the india china border which had some predicting future war, certainly did not help. But somehow economic disaster in india does not appear to have occurred.

It is possible that modern day economies are more durable than equivalent economies in the 1920s. Improvements in communications, productivity, shipping, infrastructure and the internet could all contribute towards economies being more diversified and impregnable. I would guess india will be ok.

It's hard to take much away from comparisons over the last 2 years of Covid, because it caused a lot of erratic and unprecedented responses across the world. The Prime minister is clearly aware of these issues after he has made deals to take on extra Russian oil at the now cheaper prices, however there is limited room for maneuver when you are in charge of the second most populous nation. India does produce a lot of exports in the form of food, but any imports will hit it hard because the average citizen is still fairly poor. It'll get little sympathy from places like Europe and America in future after being so duplicitous and failing to stand up for the free people of Ukraine.

Hmm, India is buying oil at a discount rate but they are selling those oil by refining to European countries when oil price in their own country is skyrocketing. When people are suffering because of these price hikes then govt is making a hell lot of money.

They can not reduce oil prices in their country when they are already buying it at a discount rate then how OPEC countries increased oil supply will decrease the oil price?

The inflation is India is 6-7% and you consider this bad?
The inflation in my country is 14% and my country is a member of the EU.
I know that India is importing cheap Russian oil, but this cannot save the Indians from the global inflation. The trillions of dollars and euro, that were printed in the last decade are finally leading to big consumer inflation.


There will be an increase of the oil supply, but I wouldn't call it "drastic". The oil price won't be dropping at levels below 100 USD anytime soon. The fuel prices will stabilize, but that doesn't mean that the fuels will become cheap and affordable.
The Russians didn't  agree specifically to sell oil at discounted price to India, they are just selling it to whoever is buying.
My country is consuming lots of Russian oil, but the gasoline and diesel prices are high and they keep going up, despite the cheap Russian oil.

Lol! From where did you get this information? India's internal oil consumption is so high that they have to import almost 94% of their consumption from other countries. India is buying Russian oil because They are getting it cheap. They are not reselling it to any other countries. read the below,

https://www.thehindu.com/news/national/india-is-not-a-conduit-for-russian-oil-sales-jaishankar/article65491475.ece

Buddy, try to understand US gameplan. US is the only country who has violated the human rights number of times. The countries like Syria, Afghanistan, Iraq are devastated due to their attacks. US is responsible for most number of wars in the history of humankind. US devastated the economy of Venezuela by imposing ban on them so they can't sell their oil to anyone.

US has now looked at Europe and trying to bring down the Euro dominance. UK is supporting in this effort. Don't US know what will be happening in Europe if Russia stops oil and gas supply there? These commodities will become pricey so will the inflation and in turn the consumer goods will become pricey. The GDP will reduce so will the Euro dominance and its value.

Whoever trust US and their actions, may God save them!

Well, that has always been the case in this globalized era. One problem somewhere in the farther part of the world could create ripples that could affect in a number of ways many other countries. Sometimes it is surprising that it still surprises us. At least that's my reaction when I bought a small butane canister a month or two ago and the price was around 25% higher. It was said to be an effect of Russia's invasion of Ukraine. I was taken aback knowing that I'm living in a small Southeast Asian country far away from Europe. But then...

US objected and so is the EU, and they are talking to the Indian government about that. So the US-India relationship is on the rocks right now because of that move by India to buy cheap Russian crude oil when almost half of the world is condemning Russia for the war against Ukraine and US and it's ally put a sanctions on them.

And then reports surfaces that India is reselling the oil to the US and the West that comes from Russia. For sure this is going to rise the tension now and their relationship is going to be tested.

As for the rate hike, I think it's inevitable, countries economy has been devastated by the effect of the Covid-19 and it will take sometime for any government to recover from that. And now is the time to start and obviously, government's treasure chest is empty now and they have to find ways to bring money again thru new tax measures.

But that is correct - India is getting discounted oil from Russia, and USA didnot object. And I fail to understand why USA is so kind to IND - only because India is an allie? They discriminate when they give a bit extra attention to their favourite kid. I am a bit jealous. May our country get the subsidised oil too so there is some stability in the country.  Ameen