True (Economic) Cost of War
True (Economic) Cost of War (12/3/2022)
Higher crude prices > higher freight prices > lower manufacturing growth > higher commodity inflation > lower GDP growth > lower job creation. India’s major imports of industrial commodities such as oil, gas and metals have reached multi-year highs and the IHS Markit India PMI predicts a further increase in average input costs.
With lower rise in Index of Industrial Production (IIP), lower production on a y-o-y basis, drop in margins of sectors such as tyres and cement are just a few repercussions.
Amid geopolitical risks, prices of energy commodities will likely remain elevated over the short term.
