Commerce Ministry Gears Up For Inter-Ministerial Meeting On Red Sea Crisis’ Impact On Trade

New Delhi, Jan 12 (KNN) The Commerce Ministry of India has summoned an inter-ministerial meeting slated for next week to devise strategies addressing the trade impact of the ongoing Red Sea crisis.

Senior officials from key ministries, including External Affairs, Defence, Shipping, Finance, and Commerce, will participate in discussions aimed at mitigating the disruptions caused by the crisis.

A senior official from the Commerce Ministry expressed that the primary goal of the meeting is to formulate strategic measures that ensure the least possible impact on Indian trade amid the Red Sea crisis.

The global logistics challenges arising from the Red Sea and Gulf of Aden situation have significantly affected maritime cargo movement, particularly for dry-bulk, oil, and merchandise cargo dependent on the Suez Canal and the Red Sea.

In an Inter-Ministerial Services Improvement Group (SIG) meeting last week, chaired by Special Secretary (Logistics), DPIIT, Sumita Dawra, representatives of major shipping lines operating in India discussed the current Red Sea situation and its potential implications for the country's EXIM trade.

Indian exports to Europe and the West, using the Red Sea route, encompass a substantial number of commodities, including agri-products, steel, engineering goods, automobiles, textiles, and chemicals.

The meeting underscored critical issues related to ongoing developments in the Red Sea region, focusing on the safety of ships, crew, and cargo.

Discussions also delved into the implications for timely deliveries and the cost aspects of cargo movement.

Shipping associations, such as the Indian National Shipowners' Association (INSA) and Container Shipping Line Association (CSLA), participated, sharing insights on the ongoing developments in the key global maritime passage and its impact on India's trade and logistics sector.

The associations commended the efforts of the Indian government and the Indian Navy in safeguarding vessels navigating through the affected route.

During the discussions, initiatives by the Indian government, including the activation of control rooms, standardised reporting formats, and Standard Operating Procedures (SoP) for safety regulations, were highlighted as crucial steps to address the challenges posed by the Red Sea crisis.

(KNN Bureau)