ECONOMIC IMPACTS OF RUSSIA-UKRAINE CONFLICTON INDIA AND PAKISTAN: AN ANALYSIS

Abstract

The Russia-Ukraine war initiated in 2022 caused major worldwide economic impacts resulting in specific financial consequences for Pakistan and India. The price of energy continues to increase in both nations because they depend on importing oil and gas and the global supply chains disruptions from the war have propelled food and energy costs through the roof. Pakistan's financial condition remains unstable because rising inflation together with a declining currency value has raised the expenses for its residents. The inflationary situation in India remains less severe but disruptive grain exports from Ukraine have led to agriculture price increases. Increased defense spending because of geopolitical tensions has stressed both economies to beyond their economic capacity. Global markets demonstrate a negative response to the war-caused uncertainty thus affecting foreign investments. The ongoing conflict creates economic problems such as rising living costs along with inflation and economic slowdown in both India and Ukraine.

Key Words: Russia, Ukraine, war, Indian economy, Pakistan economy, crisis, inflation