Attacking ships on the Red Sea by an infamous group known as the Houthi terrorist organisation, a well-known terrorist organisation, negatively impacted India’s imports and exports. According to reports, commercial ships have been attacked by the terrorist organisation through rocket launchers and drones.
This was due to Israel attacking the Gaza Strip, which has made them more active. In response to the violation, Israel initiated offensive operations towards Gaza, thereby leading Houthi to assist Gaza and warning that if Israel does not stop the attack on Gaza, then they might begin firing into ships and innocent ship crew.
These corporations are aided by some other radical countries, such as Egypt, Turkey, and Yemen, which give them military support as well as financial resources. Hence, it is not something new because, for many years, these nations have done this on a global scale. Because of the Red Sea crisis, the demand for basmati rice has increased significantly. Earlier, the government banned the export of non-basmati rice, and now, because of continuous attacks on ships, the demand for basmati rice has increased as well as the price.
Tea exports have been affected significantly. As the price of logistics increased by 60%, the Tea Association of India also commented on this topic and raised concerns about the situation. According to the study, redirecting ships caused around $200 billion in total losses.
India is also quite a big exporter of buffalo meat; most of the countries are affected by this, as most of the meat exported from India comes from the Red Sea. India imports fertiliser from European and North American countries to be specific, from the USA and because of the late shipments, the farmers are suffering. The Ministry of Chemicals also raised concerns about this.
The freight cost of well-known Indian spices has risen because of the long distance; around three times the freight cost has risen, affecting other products’ prices, the exports union spokesperson told the media.
Sunflower oil and crude oil are also affected by the Red Sea crisis. India imported a lot of crude oil from the Middle East and Russia and exported sunflower oil to European nations. The United States of America, Japan, the United Kingdom, and other nations held terrorist organisations responsible for disrupting economies and global commerce. The first quarter of fiscal year 2024 will be difficult for many nations. According to reports from January 15th, prices have risen for basic needs and are going to affect the economy. India is affected both financially and security-wise. Some attacks happened in the Indian Ocean, causing panic in the region, and after that, the Indian Navy came into action.