Inter-ministerial meeting convened to address trade impact of Red Sea crisis
Jan 12, 2024
New Delhi [India], January 12 : The Commerce Ministry of India has called for an inter-ministerial meeting scheduled for next week to strategize measures addressing the impact on trade resulting from the ongoing Red Sea crisis.
Senior officials from five key ministries, including External Affairs, Defence, Shipping, Finance, and Commerce, are set to participate in the discussions aimed at minimising the trade disruptions caused by the crisis.
A senior official from the Commerce Ministry stated that the primary objective of the inter-ministerial meeting is to devise strategic measures ensuring the least possible impact on Indian trade amid the Red Sea crisis.
The ongoing global logistics challenges arising from the situation in the Red Sea and the Gulf of Aden have significantly affected maritime cargo movement, including dry-bulk, oil, and merchandise cargo dependent on the Suez Canal and the Red Sea.
Last week, an Inter-Ministerial Services Improvement Group (SIG) meeting took place in Mumbai, chaired by Special Secretary (Logistics), DPIIT, Sumita Dawra.
Key representatives of major shipping lines operating in India participated in the meeting to discuss the current situation in the Red Sea and its potential implications for the country's EXIM trade.
Indian exports to Europe and the West, which transit through the Red Sea route, include a significant amount of commodities such as agro-products, steel, engineering goods, automobiles, textiles, and chemicals.
The meeting highlighted important issues related to ongoing developments in the Red Sea region, emphasising the safety of ships, crew, and cargo.
Discussions also covered implications for timely deliveries and the cost aspects of cargo movement.
Shipping associations such as the Indian National Shipowners' Association (INSA) and Container Shipping Line Association (CSLA) participated in the meetings, sharing their experiences on the global key maritime passage's ongoing developments and its impact on India's trade and logistics sector.
Associations appreciated the efforts made by the Government of India and the Indian Navy in safeguarding vessels passing through the affected route.
Initiatives taken by the Government of India, including the activation of control rooms, standardized reporting formats, and Standard Operating Procedures (SoP) for safety regulations, were highlighted during the discussions.
