Indian trade and diplomatic stance with the region is likely to be affected by the deadly attack by Hamas on Israel on Saturday and the declaration of Israel-Palestine war by Prime Minister Benjamin Netanyahu. Experts, however, say the severity of the impact will depend on the length of the escalation.
Ajay Srivastava, Founder of the Global Trade Research Initiative and a former Indian Trade Service officer, predicts that India’s trade with Israel may suffer significant consequences if operations at the top three Israeli ports – Haifa, Ashdod, and Eilat – are interrupted. These ports handle a variety of goods, including agricultural products, chemicals, electronics, machinery, and vehicles. Currently, most of India’s merchandise trade with Israel is conducted through the Eilat port on the Red Sea. However, there have been no reports of any disruptions so far. The extent of the impact on trade will ultimately depend on the duration and intensity of any potential conflict between the two nations.
Over 600 people have already been killed on the Israeli side and about 370 in Gaza since Hamas launched its multi-front attack by land, air and sea on Israel on Saturday.
The PMO is closely monitoring the situation in Israel in order to bring back Indian students stranded there, Union Minister of State for External Affairs Meenakshi Lekhi told reporters on Sunday. The Indian Embassy in Israel has asked all Indian nationals to remain vigilant and observe safety protocols.
The escalation of the Israel-Palestine war confrontation may affect Indian trade with Israel, especially in critical items such as defence equipment, but also pose a serious challenge to India’s diplomatic efforts.
Narendra Modi has expressed deep shock over the attack, and said that India stands in solidarity with Israel, but some say that if the war continues, it could complicate India’s diplomatic stance.
India will have to measure its steps if the Arab world gets involved in this dispute, as it has done in the past. As a result of the India-Middle East-Europe economic corridor, India’s economic and strategic ties to the Middle East have become even stronger. Biswajit Dhar, Distinguished Professor, Council for Social Development, says India needs to tread carefully in case the war intensifies.
Despite the fact that a direct conflict between Hamas and Israel may not have an impact on India, if other actors like Hezbollah and Iran become involved, the security and stability of the West Asian region will suffer terribly. According to Anil Trigunayat, Former Ambassador of India to Jordan, Libya and Malta, this will have direct consequences for India’s energy supply, economy, and investment, as well as the welfare of Indian expats.
India has maintained a robust position on Israel-Palestine war and relations with them despite PM Modi’s solidarity with the Israeli people following these unprecedented Hamas attacks. Since the conflict is intense at the moment and perhaps in the future as well, the international community must also take seriously the Palestinian issue, he said.
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