PM Modi chairs high-level security meet on West Asia crisis
Prime Minister Narendra Modi convened an emergency meeting of the Cabinet Committee on Security (CCS) to discuss the escalating crisis in West Asia. The CCS, which includes the PM, Home Minister, Defense Minister, Foreign Minister, Finance Minister and National Security Adviser, examined the recent hostilities in the Middle East and their potential implications. They expressed concern over these developments and their potential impact on trade, navigation, and supply chains—particularly oil and petroleum products.
India's trade concerns amid escalating West Asia tensions
The escalating conflict between Iran and Israel has raised concerns for India regarding potential disruptions to key trade routes in the Red Sea and Gulf of Aden. The ongoing hostilities could lead to significantly higher cargo freight tariffs, given the close ties between Lebanon's Hezbollah militants and Yemen's Houthi rebels—who are known for attacking merchant ships and cargo vessels in these regions.
Red Sea crisis' impact on India's petroleum exports
The Red Sea crisis, initiated by Iran-backed Houthi militia disrupting global trade, has already impacted India. The country's petroleum exports witnessed a significant drop of 37.56% to $5.96 billion in August this year, down from $9.54 billion during the same period last year. The Suez Canal and Red Sea route account for a substantial portion of India's trade—50% of exports and 30% of imports as per 2023 data.
India's trade relations with Gulf nations amid crisis
India maintains robust trade relations with the Gulf nations, further highlighting its concerns over the escalating conflict. The Gulf Cooperation Council (GCC) contributes to 15% of India's total trade, with sectors like energy, defense, security and health experiencing rapid growth. Bilateral trade between India and the GCC countries reached a significant $162 billion last year.
India issues travel advisories amid escalating tensions
In light of the escalating tensions, India has issued travel advisories for its citizens. The Ministry of External Affairs has advised against traveling to Iran and urged those already in the country to remain vigilant and stay in contact with the Indian Embassy in Tehran. Similar advisories have been issued for Indian nationals in Israel, urging them to adhere to safety protocols issued by local authorities.
