• UGI USER
  • Jan 17, 2024
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RED SEA SHIPPING CRISIS IMPACT ON INDIA

Why in the News?

  • Attacks on shipping vessels in the lower Red Sea have increased, impacting 80% of India’s merchandise trade with Europe.
Source: Britannica

About the Impact on India:

  • Red Sea disruption increases costs, surcharges, and delays, affecting global commodity movements.
  • Approximately 80% of India’s exports to Europe rely on the Red Sea region.
  • Container availability remains stable, but higher freight costs and longer transit times may elevate the prices of imported goods.

Fact :The EU contributes to over 15% of India’s total goods exports.

About Red Sea

·    Geographical Overview: 

o    Inlet of the Indian Ocean, situated between Africa and Asia.

o    Noteworthy for being one of the world’s most saline bodies of water.

·    Bordering Countries: Shares borders with Egypt, Saudi Arabia, Yemen, Sudan, Eritrea, and Djibouti.

·    Connectivity:

o    Links to the Indian Ocean in the south through the Bab el Mandeb strait and the Gulf of Aden.

o    Features the Sinai Peninsula, Gulf of Aqaba, and Gulf of Suez in the north, leading to the Suez Canal.

·    Geological Placement: Occupies a section of the Great Rift Valley, known as the Afro-Arabian Rift Valley.