`India monitoring impact of escalation in Iran-Israel tensions on its trade’

The government is monitoring the impact of the escalation in Iran-Israel tensions on India’s trade and will take “appropriate actions”, a senior government official said.

“Policy interventions will only come after we understand the issues traders are facing. Based on consultations, we will do whatever needs to be done,” Commerce Secretary Sunil Barthwal told reporters on Monday.

Iran launched hundreds of drones and missiles against Israel on Saturday in an unprecedented attack in retaliation against an alleged Israeli raid on the Iranian consulate in Damascus two weeks ago.

Export concern

This recent escalation in tensions between Iran and Israel, which has happened over six months after the start of the Israel-Hamas conflict that devastated Gaza and killed thousands of Palestinians, has left Indian exporters worried. Some fear that shipping and insurance costs are likely to go further up if the situation worsens.

• Also read: Govt making active efforts to secure release of repatriate 17 Indians on vessel seized by Iran: S Jaishankar

Barthwal pointed out that the government had engaged in extensive stakeholder consultations earlier to understand the impact of militant group Houthi’s attack on ships going through the Red Sea on exporters. “After the consultations, we had taken measures such as asking the ECGC not to increase insurance rates,” the Commerce Secretary added.

The Ministry hoped to engage in similar consultations on the impact and mitigation of problems for Indian traders arising out of the Iran-Israel conflict. “We are monitoring the situation and we will take appropriate actions,” Barthwal said.