Global Tensions: The Impact of Iran-Israel Conflict on India's Trade

The Indian government is intensively scrutinizing the escalating conflict between Iran and Israel due to its potential repercussions on the nation's trade dynamics. A high-level meeting with shipping companies and other stakeholders is set to occur this week to evaluate the situation's unfolding effects on overseas trade.

Commerce Secretary Sunil Barthwal highlighted the unpredictable impact of the conflict, stating, "We are monitoring the situation. Discussions this week with shipping lines, container organizations, and other stakeholders aim to uncover challenges and devise strategic responses." Exporters have voiced concerns, warning that an escalation could hike shipping costs globally.

The Strait of Hormuz, crucial for India's oil imports, now faces threats of closure, posing inflationary pressures on the economy. Moreover, the Red Sea's Bab el-Mandeb Strait, a key west-bound export route, also faces disruption risks. This geopolitical strain could further contract global trade, already under pressure from existing tariff battles.

(With inputs from agencies.)