Union External Affairs Minister S Jaishankar at an event in Bengaluru on Monday.
Credit: DH Photo/ B K Janardhan
Bengaluru/New Delhi: Expressing deep concern over rising hostilities between Israel and Iran, External Affairs Minister S Jaishankar on Monday said that he has spoken with his counterparts in both the nations, advising them not to escalate the situation as the Middle East is important for India as well as the global economy.
“We have been telling both parties that this is a crucial region for the global economy and for India," Jaishankar said at an event in Bengaluru. "About a crore Indians live here, a big part of our shipping trade passes through the region and our oil comes from this region. So this is an enormously sensitive region. We are very concerned whenever this kind of escalation and hostility happens.”
“Yesterday, I called both of my counterparts (Israel and Iran) and urged them to get back to normalcy. We would like to find ways of de-escalating the situation and I am hopeful that it will go in that direction,” he said.
In New Delhi, Union Commerce Secretary Sunil Barthwal said the government is keeping a close watch on the evolving trade situation amid the escalating tensions and may take remedial measures to help exporters.
He said the Ministry of Commerce and Industry is in touch with export promotion councils, container companies, shipping firms and other line ministries.
“Based on the feedback received from these stakeholders, we will carry out an internal analysis and take actions accordingly. If any remedial measures are needed, the government is open, but it will depend on how the situation plays out,” Barthwal said
However, the Barthwal did not elaborate on the possible help extended to exporters citing the Model Code of Conduct, which is in place due to the ongoing Lok Sabha election.
Iran launched a massive drone and missile attack on Israeli positions over the weekend. On Monday, global leaders scrambled to cool down temperatures and ensure that the situation does not deteriorate.
The unfolding conflict is likely to severely hit India’s shipments to Europe and the Middle East, which were already reeling under pressure due to ongoing tensions in the Red Sea.
About 15 per cent of global maritime trade volume normally passes through the Red Sea, which is the shortest maritime route between Asia and Europe. In recent months, a substantial portion of this trade has been diverted to the Cape of Good Hope due to attacks by Houthis and increased instances of pirate attacks.
On the 17 Indian sailors held in Iran, Jaishankar said in Bengaluru said that he had spoken with his Iranian counterpart already and pressed the Iranian government to and initiate a process to release these members.
“After this we have had a follow up conversation...between our Embassy and Iranian authorities. As of now, I am getting some reports but for me until I get a report from my embassy and that too once they meet the sailors personally, that is when I will be satisfied,” he said and added that these people were in a Portuguese vessel when Iranian forces took control of the ship.
Highlights
Maritime trade roiled About 15 per cent of global maritime trade normally passes through the Red Sea, the shortest maritime route between Asia and Europe In recent months, a substantial portion of this trade has been diverted to the Cape of Good Hope Volume of trade that passed through the Suez Canal dropped by 50 per cent year-over-year in the first two months of 2024 Volume of trade transiting around the Cape of Good Hope surged by around 74 per cent above last year’s level, IMF PortWatch data showed India's dependence on the Red Sea is even higher. Around 50 per cent of India's exports and nearly 30 per cent of imports during the year 2022-23 passed through the Red Sea
We have been telling both parties that this is a crucial region for the global economy and for India. About a crore Indians live here a big part of our shipping trade passes through the region and our oil comes from this region. So this is an enormously sensitive region. We are very concerned whenever this kind of escalation and hostility happenS Jaishankar External Affairs Minister