The Israel-Hamas conflict has now spread to Iran via Lebanon, Syria, indirectly affecting Jordan and many more countries. The ongoing war between West Asian countries is affecting business across 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, a leading organization of exporters, said the Iran-Israel conflict has the potential to significantly impact world trade and the global economy in a number of ways.
These goods can be expensive in India
Major items of India's exports to West Asian countries include basmati rice, man-made yarn, fabrics, gems and jewellery, cotton yarn and fabrics. 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 growth in trade in sectors such as electronic machinery and high-tech products, communication systems and medical devices. Due to Israel-Iran and Russia-Ukraine wars, the prices of these goods and their related products may increase in India.
Insurance costs also expected to increase
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