Iran-Israel War: GTRI founder Ajay Srivastava said, “Israel’s exports have fallen by a massive 63.5 percent. Due to this, Jordan has seen a decline of 38.5 percent and Lebanon has seen a decline of 6.8 percent.”Â
Iran-Israel War: The Israel-Hamas conflict has now spread to Iran via Lebanon, Syria. It is indirectly affecting Jordan and many other countries. The ongoing war between West Asian countries is affecting the business sector around the world. India is also not untouched by this. According to research institute Global Trade Research Initiative (GTRI), the conflict is already hurting India’s trade with countries like Israel, Jordan and Lebanon. FIEO, the leading organization of exporters, said that the Iran-Israel conflict has the potential to significantly affect world trade and the global economy in many ways.
These goods may become expensive in IndiaÂ
Major items of India’s exports to West Asian countries include Basmati rice, man-made yarn, clothing, gems and jewelry, cotton yarn and clothing. India is Israel’s second largest trading partner in Asia. However, bilateral merchandise trade is mainly dominated by diamonds, petroleum products and chemicals. Recent years have seen an increase in trade in sectors such as electronic machinery and high-tech products, communication systems and medical equipment. Due to the Israel-Iran and Russia-Ukraine war, the prices of these goods and related products may increase in India.
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Insurance costs are also expected to increase
Exporters say that the escalation of conflict in the West Asian region could harm trade in sectors such as crude oil, electronics and agriculture, along with increasing already high logistics costs. He said that insurance costs for exports to countries directly involved in the war may also increase, which will affect the working capital of Indian exporters. During January-July, 2024, India’s trade with countries directly affected by the conflict has faced significant challenges. Ajay Srivastava, founder of GTRI, said, “Israel’s exports have declined by a massive 63.5 per cent. As a result, Jordan saw a decline of 38.5 percent and Lebanon saw a reduction of 6.8 percent. The Israel-Hamas conflict, which began in October 2023, has now spread to Lebanon, Syria and is indirectly affecting Jordan and Iran.
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