Navigating the Trade Turbulence: India's Response to the Iran-Israel Conflict
The Indian commerce ministry is evaluating the impact of the Iran-Israel conflict on global trade, stressing concerns about the Strait of Hormuz and Red Sea routes. Discussions involve key stakeholders to address potential disruptions in crude oil transport and global trade shifts, while exploring alternative trade avenues.
- Country:
- India
The commerce ministry took action on Friday by consulting essential stakeholders to understand the ramifications of the ongoing Iran-Israel conflict on India's international trade. Officials noted the current stability around the Strait of Hormuz, supported by a ship reporting system for incident monitoring.
Chaired by Commerce Secretary Sunil Barthwal, the meeting emphasized the need to evaluate the fluid situation and its impacts on trade. Barthwal stressed exploring alternatives as exporters voiced concerns about possible disruptions in crucial maritime routes like the Strait of Hormuz.
Experts warned that a closure of the Strait could inflate oil prices and disrupt trade flows, significantly affecting India. With energy imports making up over 80% of its needs, India could face soaring costs and inflation if these routes are obstructed.
(With inputs from agencies.)
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