Indian exporters may have to face higher insurance premiums, shipping costs – Dainik Savera Times
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New Delhi: Indian exporters sending goods to Israel may face higher insurance premiums and shipping costs due to the Israel-Hamas conflict. Experts said this. Hamas terrorists launched a surprise attack on Israel on Saturday during a major Jewish holiday, worsening the situation there. International trade experts believe the conflict could reduce the profits of domestic exporters, although the situation is unlikely to worsen. Till now it will not have any impact on the size of the business.
“The struggle for India’s merchandise exports could lead to an increase in insurance premiums and shipping costs,” research institute Global Trade Research Initiative (GTRI) said on Sunday. ECGC of India can charge higher risk premium from Indian companies exporting to Israel. ECGC Limited (formerly Export Credit Guarantee Corporation of India Limited) is wholly owned by the Government of India.
“If the situation worsens, things could get worse for our exporters in that region,” said Sharad Kumar Saraf, founder-chairman of Technocraft Industries India, a Mumbai-based exporter. GTRI co-founder Ajay Srivastava said if the situation worsens, Trade at Israel’s three largest ports, Haifa, Ashdod and Eilat, could be seriously affected if operations are disrupted. India-Israel trade in goods and services sectors is estimated to reach US$ 12 billion in 2022-2023.
Indian companies such as Sun Pharma, Tata Consultancy Services, Wipro, Tech Mahindra, State Bank of India, Larsen & Toubro and Infosys have a presence in Israel. Israeli companies have invested in renewable energy, real estate and water technologies in India. They are also setting up R&D centers and production units in India. Between April 2000 and June 2023, Israeli companies have invested US $ 286 million (FDI) in India.
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