India Takes Precautions to Safeguard Trade Amid Global Conflict
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New Delhi: India's government is taking steps to protect its supply chains by safeguarding exports and ensuring uninterrupted imports of essential commodities, including energy, fertilizers, and edible oils, from various sources.
The move comes as the country's reliance on the Middle East for energy imports has been disrupted due to the ongoing conflict in the region.
India's energy imports from the Middle East account for around 55% of the country's total energy imports, with the Strait of Hormuz being a key shipping route that has been affected by Iranian strikes.
As an alternative, refiners are expected to increase purchases from relatively safer regions, including the US, Venezuela, and Russia, which was India's largest crude supplier until last year.
The government has reviewed the supply situation for crude oil, liquefied petroleum gas, and other petroleum products with senior officials and state-run oil companies, and has assured that all necessary steps will be taken to ensure availability and affordability of major petroleum products in the country.
The commerce ministry has also held an inter-departmental meeting with stakeholders to assess potential trade disruptions and maintain predictability in cargo movement, minimising delays and ensuring seamless documentation and payment processes for exporters and importers.
The government has reiterated its priority of maintaining continuity in export-import logistics and mitigating disruptions to trade flows, with a focus on protecting exporters, especially MSMEs, while ensuring essential imports remain unaffected.
