Israel-Hamas conflict: Exporters remain wary of serious consequences

The ongoing conflict between Israel and Palestine may not have made an immediate impact in India, exporters remain wary and believe that there can be serious repercussions if the situation worsens.
 

After the pandemic, the region, including six Gulf Cooperation Council and seven other West Asian nations, has seen the highest growth in exports from India, dominated by traditional products, such as refined petroleum, cereals, sugar, apparel, diamonds and engineering products.
 

Similarly, even in the case of imports, the dependence is largely on crude oil, mainly from Saudi Arabia, Iraq, and the United Arab Emirates. In case the conflict escalates, India’s trade with Iran may be the biggest casualty.
 

“In case of an escalation, there can be serious repercussions that can jolt global trade. The world cannot afford two wars. The worsening of the conflict can result 
 

in higher oil prices, and impact freight costs as well as supply of rough diamonds,” Ajay Sahai, director-general and chief executive officer, Federation of Indian Export Organisations said.