Indian exporters brace for challenges due to Israel-Hamas conflict

  • Industry News
  • Oct 10,23
International trade specialists have indicated that this conflict might reduce the profits of Indian exporters temporarily, though trade volumes are unlikely to be impacted unless the war escalates significantly.
Indian exporters brace for challenges due to Israel-Hamas conflict

The conflict between Israel and Hamas could lead to increased challenges for Indian exporters shipping goods to Israel, including higher insurance premiums and shipping costs, according to experts. The Hamas militant group, governing the Gaza Strip, initiated a surprise multifront attack on Israel's southern regions by air, land, and sea.

International trade specialists have indicated that this conflict might reduce the profits of Indian exporters temporarily, though trade volumes are unlikely to be impacted unless the war escalates significantly.

The Global Trade Research Initiative (GTRI), a think tank, stated that Indian merchandise exports to Israel might face elevated insurance premiums and shipping expenses. India's Export Credit Guarantee Corporation (ECGC), a government-owned entity, might impose higher risk premiums on Indian firms exporting to Israel.

Sharad Kumar Saraf, founder chairman of Mumbai-based exporter Technocraft Industries India, expressed concerns about the short-term impact on Indian exporters. He warned that if the conflict escalates further, the situation could worsen for exporters in the region.

Ajay Srivastava, co-founder of GTRI, emphasised that trade could be severely affected if operations at Israel's major ports ? Haifa, Ashdod, and Eilat ? are disrupted. These ports handle shipments of various products, including agricultural goods, chemicals, electronics, machinery, and vehicles. Most of India's trade with Israel takes place through the Eilat port, located on the Red Sea.

As of now, there have been no reports of port disruptions. India-Israel bilateral services trade is estimated to be around $1.3 billion, but it might not be impacted unless the conflict expands to involve larger parts of Israel. Srivastava emphasised that the actual impact would depend on the duration and intensity of the war.

In the fiscal year 2022-2023, India's merchandise and services trade with Israel is estimated at $12 billion. India's key exports to Israel include diesel ($5.5 billion) and cut and polished diamonds ($1.2 billion). Key imports from Israel include rough diamonds ($519 million), cut and polished diamonds ($220 million), electronics and telecom components, potassium chloride, and herbicides.

Additionally, India exports various IT services to Israel, such as software development, IT consulting, and data processing. The two countries collaborate extensively in research and development in agriculture, water technology, and renewable energy.

Moreover, India is a popular tourist destination for Israelis, and both nations are exploring a free trade agreement. Israeli companies have made significant investments in India, particularly in renewable energy, real estate, and water technologies, establishing research and development centres and production units in the country. During the period from April 2000 to June 2023, Israeli firms have invested $286 million in India.

Source: ET Energy World

Related Stories

Policy Regulation
India-Asean trade agreement review in July

India-Asean trade agreement review in July

The ministry disclosed that eight sub-committees have been formed to address various policy aspects of the agreement, with five already engaged in discussions.

Read more
Other Industrial Products
Will exports turn positive amid Red Sea crisis?

Will exports turn positive amid Red Sea crisis?

Armed conflict in the Red Sea is affecting the global trade as the movement of goods has been hindered by the conflict since November last year

Read more

Related Products

Heavy Industrial Ovens

INDUSTRIAL SUPPLIES

Hansa Enterprises offers a wide range of heavy industrial ovens.


Read more

Request a Quote

High Quality Industrial Ovens

INDUSTRIAL SUPPLIES

Hansa Enterprises offers a wide range of high quality industrial ovens. Read more

Request a Quote

Hydro Extractor

INDUSTRIAL SUPPLIES

Guruson International offers a wide range of cone hydro extractor. Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back