Indian exporters shipping goods to Israel may experience increased insurance premiums and shipping costs due to the recent Israel-Hamas conflict, experts warn. A surprise multifront attack by Hamas on Israel’s southern regions has led to concerns in international trade circles.
The Global Trade Research Initiative (GTRI) highlighted that this conflict might impact the profits of Indian exporters, primarily if it escalates. ECGC, a government-owned entity offering credit risk insurance services, may raise risk premiums for Indian firms exporting to Israel.
While the short-term impact may affect Indian exporters, the real concern arises if the war disrupts the operations of Israel’s major ports, including Haifa, Ashdod, and Eilat. These ports handle various shipments, including agricultural products, chemicals, electronics, machinery, and vehicles.
Although the bilateral trade between India and Israel stood at $12 billion in 2022-2023, the full repercussions will depend on the conflict’s duration and intensity.
