SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 09 Oct, 2023  

Tank.9.Thmb.jpg Israel-Hamas war

MiddleEast.jpg
   Top Stories
» 28 Indian startups raised over $800 mn in funding this week
» GST Council waives interest, penalty on notices to taxpayers under Section 73
» India's innovation ecosystem poised for exponential growth: Industry
» India's innovation ecosystem poised for exponential growth: Industry
» Overseas Indians faith grows in Indian economy with $1 billion deposits in April
IANS | 09 Oct, 2023

Amid the Russia-Ukraine conflict not showing any signs of stopping, another war was declared last week – by Israel against Hamas. Israel’s counteroffensive after the surprise attack by Hamas forces now raises fears of a long war in the Middle East, which could hit the already battered global economy further. While the Indian Prime Minister has affirmed solidarity with Israel, the war is not good news for the Indian economy as well.

Israel is a major trade partner of India with our merchandise exports to the tenth-largest overall trade partner amounting to $8.4 billion. Imports from Israel stand at $2.3 billion, resulting in a trade surplus of $6.1 billion. Our major exports to the country include diesel and cut & polished diamonds. Also, the war may impact the India’s ongoing free trade negotiations with Israel. The confrontation may also hit our imports of defence equipment from Israel.

In my last write-up, I expressed concern over India's growing Current Account Deficit along with rupee depreciation and fall is foreign exchange reserves. More importantly, rise in global crude prices can worsen the situation further and now the Israel-Palestine conflict – particularly if it lasts long as claimed by the Israeli Prime Minister and if it inflames tensions in the whole Middle East region – can further deepen the challenges the Indian economy is at present facing.

Ties with the Middle East have become more significant for India in the background of the recently announced India-Middle East-Europe economic corridor, and if the whole Arab world gets involved in the dispute, it will be a complicated scenario from India’s diplomatic point of view. Also, if the ongoing conflict impacts the stability of the West Asian region it will have direct consequences on India’s energy supply and investment inflow.

I invite your opinions.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter