00:00As the world grapples with the impact of the ongoing Russia-Ukraine conflict, economies
00:10globally are feeling the strain, especially in essential commodities like oil and urea.
00:17In India, Prime Minister Modi's government has shown fiscal prudence, managing prices
00:21and ensuring stability.
00:23We explore how India navigates the turbulent global oil and urea markets, maintaining economic
00:29balance within the country.
00:36India relies heavily on imports for oil and urea.
00:39With Russia and Ukraine engulfed in war, supply chains have been disrupted.
00:43However, India's diplomatic efforts have ensured a steady flow of both commodities.
00:50Russia is now India's largest oil supplier, accounting for more than 20% of total imports.
00:56Today, we are dependent to the extent of 88% on the foreign market.
01:02And a huge amount of foreign exchange goes out for buying the crude oil from foreign
01:08countries.
01:09The silver lining is that I would say that we came to the advantage of India, the Russia
01:17and Ukraine war, Russia is supplying a lot of crude oil to India.
01:21And that is relatively cheaper if India buys from US, Venezuela or Middle East.
01:29So that comes relatively at a lower price.
01:33And therefore, we were able to save some of the foreign currency as well.
01:38The Modi government's diplomacy has been instrumental in securing these resources, but at a significant
01:44cost.
01:45The Modi government has expanded its subsidy programs to shield consumers and farmers from
01:50the price hikes due to the war.
01:53Urea subsidies have doubled, ensuring that farmers remain unaffected.
01:57It's undeniable that India has depended on Russian fertilizer for years.
02:04That's undeniable.
02:05But I think a lot of the impacts and efforts that Prime Minister Modi has made to really
02:11ramp up things like the nano urea, that's going to make a huge difference in the long
02:17run.
02:19It's undeniable that India depends on Russia, you know, for many things.
02:23I mean, when it comes to oil, when it comes to fertilizer, sure.
02:27But it's really interesting to note that that also is what gives India an interesting sense
02:33of leverage when it comes to Russia, because they are such a large importer of certain
02:38Russian products.
02:40And that is why India has such a geopolitical importance, because when they come to the
02:45table, they are seen as the trusted broker between the two countries when it comes even
02:50at looking at a potential kind of further dialogue.
02:53However, these subsidies come at the cost of other areas like job creation, infrastructure
02:59development and social welfare works.
03:02The government has had to prioritize short-term relief over long-term investment.
03:08This strong push to put a focus on producing, you know, urea locally, nano urea, actually
03:14can certainly help in job creation.
03:16But everything is a trade-off.
03:17Of course, there are things that will be an economic hit in, you know, for a short period
03:23of time.
03:24But the long run implications of some of these schemes actually can be quite beneficial.
03:29But the devil is in the details and in the execution.
03:32It's very important to understand how this is actually going to be, you know, executed
03:37over time.
03:39India's diplomatic ties with Russia and Ukraine have been crucial in securing vital supplies
03:44while diplomacy has helped in the short term, India is also working towards self-reliance
03:49in these critical sectors.
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