New Delhi, June 23
While geopolitical tensions in the Middle East, including the ongoing Iran-Israel conflict, pose certain challenges to global trade dynamics, India’s export sector remains resilient and adaptive, the Federation of Indian Export Organisations (FIEO) said on Monday.
The country’s trade with both Iran and Israel, while important, constitutes a small share of the overall export-import basket.
"The government and industry are jointly monitoring developments to ensure minimal disruption," FIEO President S.C. Ralhan said.
"We do anticipate some short-term impact on demand and logistics, particularly in the Gulf region, which serves as a crucial hub for Indian exports. Increased shipping costs, longer transit times, and rising marine insurance premiums may add pressure, especially in price-sensitive sectors," he said in a statement.
A wider Middle East conflict is expected to have an impact on oil supplies from Saudi Arabia, Iraq, Kuwait and the UAE, which would lead to a sharp spike in oil prices. Shipping could also get hit as Yemen's Houthi rebels have already warned that they would resume their attacks on ships if the US attacked Iran.
India imports around 85 per cent of its crude oil requirement.