New Delhi: India’s Finance Minister Nirmala Sitharaman said on Monday that the government is concerned that India’s trade with Russia and Ukraine may be affected by the crisis in the region, adding that the issue is under investigation.

Speaking to business leaders in Chennai, Sitharaman said the government had dealt with the matter, acknowledging that the current geopolitical situation could affect imports of basic commodities such as cooking oil and some fertilizers. India is a major importer of Russian phosphate fertilizers. The minister also said she was also concerned about exports to the region.

“We’re right to be concerned about what’s going on from there, but I’m more concerned about what will happen to our Ukrainian and Russian exporters, which are doing really well, especially in agriculture,” Sitharaman said.

The minister said the government would conduct a full impact assessment on India’s key exports, including paying for goods already shipped to the region.

“We’re already watching what’s emerging. But I’d have to get a full assessment from the authorities before I can comment. But you can be sure we’ve dealt with quite a bit of it in pellet form because of the impact it has on essentials. , such as edible oil, sunflower oil and some fertilizers from Ukraine,” the minister said.

For phosphate fertilizers, India is completely dependent on imports. Global price spirals or payment difficulties could hurt India. India subsidizes the supply of urea, phosphorus and potash fertilizers to farmers. According to revised estimates, the central government has budgeted more than £1 trillion for total fertilizer subsidies in FY23, compared with £1.4 trillion in FY22.

According to media reports, the Russia-Ukraine crisis has prompted the European Union, the United States, the United Kingdom and Canada to announce a freeze on the assets of the Russian Central Bank and the exclusion of certain Russian banks from the Swift payment system.

State of hotel infrastructure

Responding to a businessman’s request for hospitality status, Sitharaman said she held meetings with tourism and hospitality officials on industry issues after submitting the union’s budget. The state of infrastructure can improve access to financing for the sector.

“It’s a very attractive subject. I don’t know if I can answer it right away, but I agree. There’s good potential (for the industry). Just four days ago I had a special with the travel industry Meeting, all the secretaries were present. I learned about tourism first, then hospitality. We sat with them.”

Complete News Source : Mint