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| Merchant ships |
In News
India's non-oil exports in January 2024 recorded a 9% decline compared to the previous month. As per the official data released by the Ministry of Commerce. The shipments to Europe and the United States slowed further amid the Red Sea Shipping route crisis.
This month decline in India's export is because the global shipping lines are forced to take a longer shipping route through the Cape of Good Hope leading to increase in time for the products to reach its destination, increase in shipping costs, etc. when compared to earlier shipping via the Red Sea - Suez Canal route.
Impact of Shipping route Disruption
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| India's export data over months |
Significant impact seen on India's exports to Netherlands port of Rotton, which is the biggest port in Europe. Export of electronic goods decreased 37%, drug and pharmaceuticals decreased by 18% and engineering goods export slipped 15% when compared to December 2023.
Also, India's exports to US in electronic goods and drugs and pharma shipments slipped 6.32%.
Impact on Oil Exports
The impact of Red Sea crisis was however limited on the oil exports of India because India's petroleum product export attracted attention from various other geographies. Petroleum exports to Europe recorded a shape decline of 22%, but its export to Singapore, Australia, Indonesia, Japan, Oman, Sri Lanka, and Bangladesh increased significantly.
Efforts to mitigate Red Sea crisis
UNCTAD (United Nations trade and development) had earlier raised concern over the disruption in the global trade due to chaos in the Red Sea shipping route and hurting mainly the developing nations like India.
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