PM Modi chairs urgent security meeting over west Asia crisis
- In Reports
- 11:13 AM, Oct 04, 2024
- Myind Staff
An urgent meeting of cabinet ministers was called by the Prime Minister Narendra Modi on security to discuss the ongoing crisis in West Asia. This committee includes the Prime Minister, Home Minister, Defence Minister, Foreign Minister, Finance Minister, and National Security Adviser. They focused on the recent rise in hostilities, particularly after Iran's ballistic missile attack on Israel.
Describing the situation in West Asia as "deeply concerning," the committee examined various issues related to the escalating crisis. The highlights of the meeting were the impact on trade, navigation, and supply chains, especially concerning the supply of oil and petroleum products.
India has urged all parties involved in the conflict to resolve their issues urgently through diplomacy and dialogue. The government emphasised that the ongoing conflict "must not take a wider regional dimension." Conflicts like this do not only affect the countries involved but also have repercussions that can impact the entire region and the world. With the tensions rising between Iran and Israel, India is preparing for potential disruptions in trade across crucial routes like the Red Sea and Gulf of Aden.
The conflict could lead to higher shipping costs, as Iran-backed Hezbollah militants in Lebanon are closely connected to the Houthi rebels in Yemen, who have been attacking merchant ships in these areas. The Red Sea crisis began last October when the Houthi militia disrupted global trade, significantly affecting India's petroleum exports, which fell by 37.56% to $5.96 billion in August, compared to $9.54 billion in the same month last year.
The Red Sea route, which includes the Suez Canal, is vital for India, accounting for 50% of its exports (worth ₹18 lakh crore) and 30% of its imports (worth ₹17 lakh crore) as of 2023 data. In the fiscal year 2023, India's total merchandise trade reached ₹94 lakh crore, with 68% by value and 95% by volume transported by sea.
India also maintains strong trade ties with Gulf nations. According to recent government statistics, the Gulf Cooperation Council (GCC) accounts for 15% of India's total trade, with sectors like energy, defence, security, and health rapidly growing. Last year, the bilateral trade between India and GCC countries reached $162 billion.
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