India's Trade Risks Rise Amid Iran-Israel Tensions

The Indian commerce ministry is convening a meeting on Friday with multiple stakeholders, including exporters and shipping lines, to evaluate how the Iran-Israel conflict may affect India's overseas trade. Chaired by Commerce Secretary Sunil Barthwal, the meeting aims to raise concerns about potential hikes in freight rates due to the conflict.

Experts warn that escalated tensions could disrupt vital shipping routes such as the Strait of Hormuz and the Red Sea, both pivotal for global oil trade and India's energy imports. Industry analysts from GTRI emphasize that any blockade or military action in these regions could lead to skyrocketing oil prices, heightened shipping costs, and increased insurance premiums.

The conflict's impact is further magnified by already strained global trade conditions following US tariff hikes. While India's overall exports rose 6% to $825 billion in 2024-25, its trade with Israel and Iran has significantly declined, posing challenges to India's economic stability amidst global uncertainties.

(With inputs from agencies.)