India has braced up well to meet the impact of rising commodity prices trend, triggered by geopolitical tensions involving Russia and Ukraine. Lately, international prices of crude oil and other commodities have shot up, thereby, escalating the cost of India's import basket.
However, as per the Finance Ministry's Monthly Economic Review for February 2022, the activity levels in February were not dampening, and it is unlikely that actual GDP prints of 2021-22 will be different from the levels indicated in the second advance estimates.
The geo-political crisis is still evolving and these are early days to make a plausible forecast of its impact on India's economy in the year ahead. Yet India has braced well to meet the impact of rising commodity prices. Foreign exchange reserves continue to be at a record high and are large enough to finance more than 12 months of imports.