Solution to Red Sea Crisis will be found soon, India’s tension will reduce

Red Sea Crisis: The problem of the Red Sea now seems to be solved. According to AFP, Haitian leaders have approached the British Council for a solution to the problem. Understanding this problem is likely to provide relief to the affected global supply chain. On the other hand, due to tension in the Red Sea, the cost of freight transportation in India has increased by 600 times. Its direct impact was visible on the prices of crude oil and many other essential commodities. According to a report, in the last financial year, 50 percent of the country’s exports and 30 percent of its imports came through this route. CRISIL Ratings has prepared a report on the impact of the Red Sea crisis on various business segments in the country. The crisis in the Red Sea trade route began when Yemen-based Houthi rebels launched a series of attacks on commercial cargo ships passing through it in November due to the Israeli-Palestinian war that began in October 2023. At present, American and British forces are also engaged in counter-attack on the rebels.

How much does the import and export from the Red Sea cost?

India’s domestic companies use the Red Sea route through the Suez Canal to trade with Europe, North America, North Africa and part of West Asia. India had exported Rs 18 lakh crore through this route in the financial year 2022-23. Which is about 50 percent of the total exports. Whereas, India had imports worth Rs 17 lakh crore from this region, which is about 30 percent of the total imports. India currently imports 30 percent DAP from Saudi Arabia, 60 percent rock phosphate from Jordan and Egypt and 30 percent phosphoric acid from Jordan. All these chemicals come to different ports of India through this route. Shanghai-North Europe container freight rates have increased by more than 300 percent to US$6,000-7,000/TEU by November 2023.

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In which countries there is maximum import and export?

India has exported $770.18 billion and imported $892.18 billion from its trading partners across the world in the year 2022-23. Whereas, in the year 2021-22, the country had imports worth $760.06 billion and exports worth $676.53 billion. The United States, China, United Arab Emirates, Saudi Arabia, Russia, Germany, Hong Kong, Indonesia, South Korea and Malaysia are among India’s largest trading partners. In this, India imports maximum products from China.
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