Keeping ‘close watch’ on Red Sea: Government | India News – Times of India

NEW DELHI: Government on Saturday said that it is keeping close tabs on developments around the Red Sea, where Houthi militants have been attacking ships and oil tankers, though there have not been significant disruptions in India so far.
An official said that new trade routes are being considered, and other options will be considered if the problem persists.
“As of now most shippers are taking consignments through the Cape of Good Hope, which is a long detour. The traders also have one month’s inventory. So, it has impacted much till now. But if this continues for long and escalates, it will be a problem. We are worried and we are watching the situation very closely,” a senior commerce department official said.
Officials from the commerce department, and the ministries of defence, external affairs, shipping and finance are slated to meet on Wednesday to address some of the concerns flagged by stakeholders.
Financial institutions have been urged not to increase the interest on export credit as it will hit the businesses.

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