India's national flag flaps next to the 'National Emblem' at the newly constructed Indian parliament building after the flag hoisting ceremony in New Delhi on Sept.17, 2023.
India's inflation and economic growth are at risk from the rise in oil prices caused by disruptions in the Red Sea, the government said on Friday, highlighting the need to diversify trade routes.
A combination of high freight costs, insurance premiums and long transit times can make imported goods "significantly more expensive", India's finance ministry said in its monthly economic review.
India's shipments of agricultural commodities, textiles, chemicals, capital goods, marine and petroleum products may be impacted due to the disruptions, and affect the price competitiveness of exports.
"To effectively address these challenges, there may be a need to diversify trade routes and transportation options," the finance ministry said.
Persons:
Yemen's
Locations:
New Delhi, Red, Europe, Suez, Africa