Global Economy

Inter-ministerial panel on Red Sea crisis to meet tomorrow

The high-level inter-ministerial group on the Red Sea crisis, chaired by commerce secretary Sunil Barthwal, will meet Thursday amid shipment delays and increase in cargo transport costs. This is the second meeting of the group that has officials from ministries of external affairs, defence, shipping and finance.

“As of now, there is no volume impact of the Red Sea crisis on India’s exports though transportation costs have risen. There will be discussions on the steps being taken to help exporters,” said an official.

The first meeting of the group was held on January 17. The Centre wants to ensure adequate credit flow to exporters as the disruption in the Red Sea region could impact over 80% of the trade with Europe.
“We will have to see how long-term demand is hit and how our competitor countries are being impacted,” the official added.

Exports from India are continuing as the sailings of ships carrying containers from the country have been diverted via the Cape of Good Hope route. Longer routes are resulting in an increase in shipping costs.

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