HYDERABAD: The ongoing Ukraine-Russia war is going to cast its shadow on the Indian economy in the near-term, said CII past president and Hero Enterprise chairman Sunil Kant Munjal here on Friday.
“Even if this war stops in the coming week… the negative impact of this will last for a year or two because you will see higher inflation, higher oil prices and a breakdown in the global supply chain,” he said.
“There are continuous fall outs related to these and are not easy to fix. And also, the place where Russia is going to get positioned in the global perspective, it will be very hard to do business with Russia very smoothly for some time,” Munjal said at the Indian School of Business (ISB) here. He also pointed out that in the coming days, it will be tough for India to do the balancing act of not running afoul of the western world and at the same time protecting its relationship with Russia, which has been its major trade partner and key defence partner.
On the ongoing crisis of chip shortage, he said the situation is expected to continue for the next one to two years and the only solution is to ramp up domestic capacity, for which industry will need government support.
Talking about the growth in green mobility, he said there are many technologies available such as hydrogen fuel cell and graphene. “In the short term, countries like India are trying hard to have standards for battery driven electric vehicles whereas regions like Europe are investing billions in newer technologies to figure out which will be more efficient and sustainable,” he added. Munjal, who is also the ISB executive board member, was at the Hyderabad campus to talk about his book ‘The Making of Hero’ that traces the journey of the Munjal brothers and Hero Group.
