Mumbai-based exporter and Founder Chairman of Technocraft Industries India, Sharad Kumar Saraf, said that the conflict could affect Indian exporters in the short term.
Israel witnessed an unprecedented multi-front attack by Hamas militants governing the Gaza Strip on Saturday morning.
International trade experts have mentioned that the conflict could reduce profits for domestic exporters, but it might not impact trade volumes unless the war escalates.
The Global Trade Research Initiative (GTRI) stated on Sunday, "The war could lead to higher insurance premiums and shipping costs for India's merchandise exports. India's ECGC may demand higher risk premiums from Indian firms exporting to Israel."
Sharad Kumar Saraf, the Founder Chairman of Mumbai-based exporter Technocraft Industries India, said, "However, if the war escalates, things could get worse for our exporters in that region."
Ajay Srivastava, co-founder of GTRI, mentioned that if operations at Israel's three largest ports - Haifa, Ashdod, and Eilat - were disrupted, it could seriously affect trade. These ports handle shipments of agricultural products, chemicals, electronics, machinery, and vehicles.
Most of India's trade in goods with Israel is conducted through the port of Eilat in the Red Sea.
"Fortunately, there have been no reports of disruptions at the ports so far. Bilateral services trade between India and Israel is estimated at around $1.3 billion. Unless the war escalates to cover larger areas of Israel, it may not have any impact at all. The actual impact will depend on the duration and intensity of the war," he said.
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