India weighs trade risks as West Asia tensions disrupt export routes
India weighs trade risks as West Asia tensions disrupt export routes
India's trade ministry will review how Iran–Israel tensions threaten key export routes, warning of longer voyages and higher costs as chokepoints like Hormuz and Bab el-Mandeb come under strain.
India’s Commerce Ministry is set to hold a high‑level session with exporters, shipping lines and freight forwarders to gauge the trade impact of escalating Iran–Israel tensions. With airspace closures already affecting aviation, the focus is shifting to critical maritime routes, notably the Strait of Hormuz and Bab el-Mandeb. These chokepoints are essential for India’s exports to the US, Europe and West Asia, which together account for more than half of outbound shipments. Any rerouting via the Cape of Good Hope could add 15–20 days to transit times, elevating freight rates, insurance costs and working capital pressures. The review comes as fears grow of a broader supply chain disruption, echoing past strain during the Red Sea crisis, while shipping lines prepare to revise freight rates in the coming weeks.
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