Rising tensions in Middle East may impact trade
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New Delhi: Rising tensions in the Middle East following attacks by the US and Israel on Iran are expected to disrupt trade flows, push up freight and insurance costs, delay cargo shipments, and drive a surge in global oil prices, thereby increasing India’s import bill, say experts. Though India’s trade with Iran has declined over the years due to Western sanctions, the country’s two-way commerce with Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE has registered healthy growth. Experts and exporters are of the view that prolonged tensions in the region will have consequences for India on the trade front. “The impact would be global, not just Indian. Nearly one-fifth of the world’s oil and a major share of LNG trade flows through the strait, and most shipments are destined for Asian economies, including China, Japan and South Korea,” GTRI Founder Ajay Srivastava said. If it continues for long, remittances could get hit. It may also slow down FTA talks with Gulf Cooperation Council.
