The Ministry of Commerce is going to have an important meeting on Friday. In this meeting, the situation of Iran-Israel war and its impact on India will be reviewed. The meeting will include stakeholders, shipping lines, exporters, container firms and people from other departments. The meeting will be chaired by Sunil Barthwal, Secretary, Ministry of Commerce. Barthwal said that India is constantly monitoring the situation.
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There will be a profound impact on business
Exporters say that if the battle of Iran and Israel goes on long, it will affect trade around the world and increase the cost of sending goods in aerial and maritime ways. It is feared that the struggle of the two countries will also affect marine shipping and the movement of ships passing through Hormuz Strait and Red Sea may be disrupted. Two -thirds of crude oil and half LNG imports to India are only from the strainer. Iran has threatened to close it due to the war. The hormuz drainage is only 21 miles wide in some places and from here the total oil of the whole world is the fifth part of the trade. India imports 80 percent of its needs. In such a situation, the business of hormuj straititude is very important in terms of India’s energy needs.
Inflation may increase due to increase in oil prices
According to the think tank GTRI, the prices of oil will increase rapidly worldwide due to disrupting trade from Hormuz Strait. Also, this will increase the cost of movement of ships, insurance premium, inflation. Also, it will also put pressure on the rupee and all this can spoil India’s budget. On 14-15 June, Israel also attacked the Huti rebels, increasing tension in the Red Sea region and targeting Huti rebel trading ships.