India's Foreign Trade Resilient Amid West Asia Conflict, Says Minister

Impact of West Asia Conflict on India's Trade

Guwahati, July 19: Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, stated on Saturday that India's foreign trade remains largely unaffected despite the ongoing conflict in West Asia and the closure of the Strait of Hormuz.

In an interview, Sonowal highlighted that while many nations are experiencing economic challenges due to the situation in West Asia, India's economy has shown resilience. He remarked, “Although the conflict has impacted various economies, India has managed to withstand the effects relatively well.”

The minister acknowledged that the repeated closures of the Strait of Hormuz pose challenges for all nations, given that Gulf countries account for 60% of the world's oil and gas production. However, he assured that India has established alternative arrangements to secure energy supplies from other oil and gas-producing nations.

Sonowal emphasized that maritime routes facilitate 95% of India's foreign trade by volume, and while the closure of the Strait of Hormuz presents a significant challenge, India has successfully diversified its trade routes.

“We are utilizing various alternative routes for our foreign trade, allowing us to maintain connections with European and African nations, as well as the USA. Additionally, we have established a new route to Russia. Therefore, the frequent closures of the Strait of Hormuz have not severely impacted our foreign trade,” he explained.

However, he cautioned that prolonged closures of the strait would inevitably affect trade with Gulf countries.