Red Sea Crisis UPSC NOTE


  • Indian exporters of rice and marine products are most adversely affected by the strife in the Red Sea, while a prolonged crisis on the key shipping route can affect the profitability and working capital cycle of export-oriented industries and trigger supply chain issues that could renew inflationary pressures.

  • Companies typically use the Red Sea route through the Suez Canal to trade with Europe, North America, North Africa and part of the middle-east—regions that accounted for almost half of India’s exports and 30% of imports in 2022-23

  • Around 95% of India’s goods trade volumes are shipped through sea.

  • Increasing attacks on ships sailing in the Red Sea region have persuaded shippers to consider the alternative, longer route past the Cape of Good Hope, increasing transit costs.

  • On the import front, the impact is expected to be limited for import-dependent sectors like non-urea fertilisers at this point, but a sustained uptick in sourcing costs would need higher subsidy payments from the government.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Red Sea Crisis UPSC NOTE
Red Sea Crisis UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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