Page 14 - ITLN January - February 2024 Issue for the Website

Focus
Red Sea

Red Sea Impact

India may lose

$30bn exports,

uncertainty

looms

With the U.S. leading the strikes against Houthis and ndia may see a decline of around
the rebels doubling down on attacks, uncertainty has $30 billion in exports in the
current financial year as threats to
increased for shippers, leading to longer shipping Icontainer shipping in the Red Sea
times and higher rates. Where is it headed? leads to increasing freight rates and

Jyothi Shankaran longer turnaround times.
"The initial assessment, conducted
by the Research and Information
System for Developing Countries, a
New Delhi-based think tank, would
mean a 6.7 percent drop in Indian
exports based on last fiscal year’s
$451 billion exports," Economic
Times reported.
The commerce ministry has called
a high-level inter-ministerial meeting
on January 17, 2024 to discuss the way
forward on the trade front in the wake
of ongoing problems in the Red Sea,
Press Trust of India reported.
"Senior officials from five ministries
- external affairs, defence, shipping
and finance (department of financial
services) and commerce - will
participate in the deliberations."
The commerce ministry has also
set up an internal strategic group,
comprising additional secretaries of
the ministry, to discuss global issues
impacting the country's trade on a
daily basis and prepare a strategy so
that India's response can be quick and
decisive, the report added.
To counter threats, India has deployed
a fleet of 10 warships to the Red Sea,
Wion reported. "INS Kochi and INS
Kolkata are now conducting patrols in
the Gulf of Aden, which links the Arabian
Sea with the Red Sea."

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