The coming storm

Russia-Ukraine fallout for India may be severe

The Russian Federation’s invasion of neighbouring Ukraine has spooked markets, investors, and economic policymakers worldwide, but India might be among the economies most exposed to any sustained turbulence. The rupee has already sunk to a new record low, and is close to about Rs 77 to the dollar. It declined by as much as 1.1 per cent on Monday alone. The rupee is now Asia’s worst-performing currency in 2022, in spite of apparent attempts to manage the fall by the Reserve Bank of India (RBI). Stock markets have also been jittery, with the Sensex falling 2.7 per cent to its