Indian Officials Explore Strategies To Address Red Sea Trade Crisis

New Delhi, Jan 18 (KNN) Indian officials from Ministry of External Affairs (MEA), Defence Ministry, Shipping Ministry, and the Department of Financial Services (DFS) convened in a meeting led by the Commerce Secretary to assess the Red Sea situation and devise effective strategies, on Wednesday.

In response to the Red Sea crisis caused by Houthi attacks on cargo ships, the government discussed measures such as easing export credit, controlling insurance rates, and enhancing defence surveillance, stated a senior government official as reported by businessline.

MEA is actively exploring diplomatic options and engaging in discussions with affected countries.

Additionally, Minister of External Affairs S Jaishankar addressed the Red Sea situation during his recent visit to Iran, emphasizing the impact on Indian trade.

The redirection of trade through the Cape of Good Hope, extended transit times, and increased shipping costs were highlighted by the Shipping Ministry, prompting a vigilant monitoring of shipping volumes through major ports.

The official mentioned, “We are monitoring the situation closely. The Commerce Ministry asked the DFS to ease credit flow to exporters as their operating costs have gone up substantially.” 

“Officials also decided to take measures to ensure that insurance costs do not increase,” he added.

(KNN Bureau)