States gained ₹49,229 cr from VAT revenue on fuel when oil prices were increasing and they will forego only ₹15,021 cr after oil price has been downwardly adjusted through excise cut by the Centre.
Though, Russia is a marginal trade partner with barely 1.4% of India's import and 0.9% of exports, spike in crude and commodity prices will elevate inflation and dent consumer demand.
According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.