How is the Purple Sea disaster impacting India’s commerce and the worldwide financial system?

On this episode of the State of the Financial system Podcast, Amiti Sen communicate to Ajay Srivastava, former Indian Commerce Service Officer and Co-founder of the World Commerce Analysis Initiative, to know extra about the escalating Purple Sea disaster and its implications for India and the world. 

Since November 2023, Yemen-based Houthi militia have focused cargo ships within the Purple Sea, claiming solidarity with Palestinians in Gaza.

As tensions rise, 95% of vessels have rerouted across the Cape of Good Hope, including 4000 to 5000 nautical miles and 15 to twenty days to journeys. The implications are far-reaching, impacting freight prices, delayed deliveries, and probably disrupting world provide chains. 

The sectors hit hardest, together with refined petroleum, chemical substances, plastics, and basmati rice. The rerouting impacts 20-25% of India’s complete merchandise commerce, significantly impacting cargo sure for Europe, the US East Coast, North Africa, and Russia. 

The podcast seems on the complexities and uncertainties surrounding crude oil imports, specializing in potential impacts on costs and options. 

The podcast ends with a stark reminder of the uncertainties surrounding the Purple Sea disaster. Will tensions escalate or de-escalate? Keep tuned for additional developments. 

Host: Amiti Sen, Producer: Siddharth Mathew.

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In regards to the State of the Financial system podcast 

India’s financial system has been hailed as a brilliant spot amid the final gloom that appears to have enveloped the remainder of the world. However a number of sectors proceed to stutter whilst others appear set to fireplace on all cylinders. That will help you make sense of the bundle of contradictions that the nation is, businessline brings you podcasts with specialists starting from finance and advertising and marketing to know-how and start-ups