According to a government official, the government is keeping a close eye on events unfolding in the West Asia region. They also confirmed that they will take all practical steps to assist local exporters in continuing commerce to the best of their ability.
The official stated that an Inter-Ministerial Group (IMG) that was established to oversee the West Asia situation and its effects on trade and energy supply chains is still operational.To maintain track of what’s happening and how it’s influencing our trade, we will continue to interact with stakeholders. “And we will do whatever is necessary on the ground to assist our exporters in carrying on the trade to the best of our ability,” the source added.
The ongoing conflict between Iran and the United States has significantly impeded ship traffic in the strategically important Strait of Hormuz.
With an increase of 7.29% year-on-year, India’s exports to West Asia now total $5 billion. Despite a drop in March shipments caused by the US-Iran confrontation, the situation improved in April and even more so in May.
While shipments to Saudi Arabia fell 4.42 percent to USD 768.56 million, exports to the UAE increased 3.57% to USD 2.7 billion.
The opposite is true for imports from Oman and the UAE, which have seen a rise. Nevertheless, it fell 29.75% from Saudi Arabia.
Image: FT
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