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Israel conflict may see high risk premiums, costs for Indian exporters

11 Oct '23
2 min read
Pic: VladSV / Shutterstock
Pic: VladSV / Shutterstock

Insights

  • The Israel-Hamas conflict may lead to Indian goods exporters facing higher insurance premia and shipping costs, resulting in reduced profit margins, international trade experts say.
  • Trade volumes, however, will not be hit, unless the war escalates.
  • Trade may be seriously hit if operations at the three largest ports of Israel are disrupted, an expert said.

Ajay Srivastava, co-founder of think tank Global Trade Research Initiative (GTRI), said trade may be seriously hit if operations at the three largest ports of Israel—Haifa, Ashdod and Eilat—are disrupted.

India trade with Israel occurs mostly through Eilat port, located on the Red Sea.

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