New Delhi: In light of escalating tensions in West Asia, Prime Minister Narendra Modi convened an emergency session of the Cabinet Committee on Security (CCS) to evaluate the unfolding Middle East crisis and its implications for India. The meeting, held with key government leaders including the Home, Defence, Foreign, and Finance Ministers, as well as the National Security Adviser, reviewed the security challenges arising from Iran’s recent ballistic missile attack on Israel, marking a significant escalation in the region.
The committee addressed the implications of the conflict on global and regional trade routes, particularly concerning maritime trade and oil supply chains. Given that critical sea routes, such as the Red Sea and Gulf of Aden, are affected, there is concern over rising freight costs and possible disruptions in essential supplies. The region’s instability has led India to anticipate potential challenges to its shipping routes, which account for 68% of India’s total trade by value and 95% by volume.
Iran-backed Houthi attacks on vessels navigating the Red Sea have already impacted global trade, and India’s petroleum exports to the region suffered a significant downturn this August, dropping by 37.5% from the previous year. Approximately 50% of India’s exports and 30% of its imports rely on the Suez Canal and Red Sea corridor, crucial for maintaining India’s trade stability.
India has also expressed strong support for diplomacy and dialogue, urging the involved nations to resolve tensions through peaceful means. Additionally, India has reiterated that any extension of the conflict’s scope would be detrimental, with risks of affecting the larger Gulf region, a primary trade partner. As of last year, bilateral trade between India and the Gulf Cooperation Council countries reached $162 billion, representing a growing economic partnership in sectors like energy, defense, and health.
The Cabinet Committee emphasized India’s commitment to safeguarding its economic and strategic interests, underscoring the necessity for comprehensive strategies to mitigate risks posed by the ongoing crisis.
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