Russia-Ukraine Conflict: Nirmala Sitharaman Says India's Development Challenged As World Peace Threatened

The finance minister was speaking at the annual Asia Economic Dialogue organised by the Ministry of External Affairs and think-tank Pune International Centre

Nirmala Sitharaman said human welfare needs a conducive environment without any disruptions or disturbances to make the post-pandemic economic recovery sustainable. Image: File photo

New Delhi: In the aftermath of the Russian invasion of Ukraine, Union Finance Minister Nirmala Sitharaman on Friday said that never has the global peace faced challenges of this significance since World War-II, and India's development is "challenged" by the recent events.

She said human welfare needs a conducive environment without any disruptions or disturbances to make the post-pandemic economic recovery sustainable.

"India's development is going to be challenged by the newer challenges emanating in the world. Peace is being threatened and after the Second World War, (a) war of this significance, this impact, on the globe probably is not felt," Sitharaman said.

ALSO READ | Govt Plans To Set Up Rupee Trade Accounts With Russia To Soften Sanctions Blow, Says Report

She was speaking at the annual Asia Economic Dialogue organised by the Ministry of External Affairs and think-tank Pune International Centre.

"Hopefully, some kind of restoration of peace at the earliest will happen, based on which, recoveries can be sustainable," she added.

Fearing that the economic recovery not just in India but across the world will be "severely hampered", Sitharaman said the welfare of humanity requires the recovery to be sustainable without facing any disruptions.

The comments come a day after Russian President Vladimir Putin announced a military offensive against its neighbour Ukraine by attacking the eastern European country from multiple sides.

Meanwhile, surging crude oil prices, which have recently hit $105 a barrel due to the ongoing Russian invasion in Ukraine, spell trouble for India and can upset its fiscal math, according to State Bank of India’s (SBI’s) economic wing report.

The rising oil prices can cause the central government a revenue loss of around Rs 95,000 crore to Rs 1 lakh crore in FY23.

Brent crude oil surged past $105 per barrel on Thursday for the first time since August 2014, following Russia's invasion of Ukraine. It however retreated and fell to $101 on Friday. It was trading at $101.93 a barrel at 1330 hrs.