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India’s export may fall $30 bln due to conflict in Red Sea — newspaper

According to economists, the use of other sea routes increases the delivery time of containers with Indian exports to EU member-states by several weeks and prompts the rise in transportation costs of a single 40 ft container from $2,000 to $6,000

NEW DELHI, January 9. /TASS/. Total Indian exports may contract by about $30 bln in the financial year of 2023-2024 ending on March 31 due to the rise in container shipments rates because of the threat of Yemen’s Houthi rebels attacks against ships, The Business Standard newspaper says, citing the New Delhi-based Research and Information System for Developing Countries.

"The crisis in the Red Sea would indeed impact India’s trade and may lead to further contraction," Sachin Chaturvedi, the director general of the think-tank, told the newspaper.

"The threats have pushed Indian exporters to hold back around 25% of the outbound shipments transiting through the Red Sea," The Business Standard noted, citing director general of the Federation of Indian Export Organizations Ajay Sahai.

According to economists, the use of other sea routes increases the delivery time of containers with Indian exports to EU member-states by several weeks and prompts the rise in transportation costs of a single 40 ft container from $2,000 to $6,000.

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