NEW DELHI: The war in West Asia will have a severe impact on trade and shipping as industry and exporters expect port closures. The air space closure puts more pressure on ship movement and exporters of gems and jewellery are scouting for alternative air routes via Belgium to import raw material.
“The situation in the region is very tense with more countries of the Gulf Cooperation Council (GCC) being dragged into the conflict with Iran,” representative for a West Asia headquartered national shipping line told ET. The Shia-majority Islamic nation launched ‘retaliatory’ missile and drone attacks in the region, hitting a US military base in Bahrain, following Israel-US attacks across Iran. Two missiles were said to be intercepted over Qatar and explosions were reportedly heard in Abu Dhabi, Kuwait and Saudi Arabia. Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain are members of the GCC.
The bloc is New Delhi’s largest trading bloc with bilateral trade reaching $178.56 billion in FY25, accounting for 15.42% of India’s global trade.
The West Asia region is the third largest export destination for India. Global shipping major Maersk said Friday it has decided to avoid the region again, citing “unforeseen constraints” and rerouting most Trans Suez services to Cape of Good Hope. Some shipping lines had recently resumed sailing via the Red Sea.
India’s Directorate General (DG) of Shipping issued advisories Saturday for seafarers presently in Iran, Strait of Hormuz, Persian Gulf and adjacent waters including those awaiting joining of vessels or awaiting wages and safe repatriation after sign-off. In a separate advisory for Indian flagged vessels, the DG shipping said all ships operating in or near the region are urged to conduct comprehensive shore security drills encompassing pertinent security scenarios, including loitering munitions, drone boat and similar threats.
