Egypt crisis not to impact trade: Sharma
Asking exporters not to be concerned about the crisis in Egypt, the government today said the turmoil has not affected the movement of ships through Suez Canal, a major waterway for global trade.world Updated: Feb 08, 2011 20:16 IST
Asking exporters not to be concerned about the crisis in Egypt, the government on Tuesday said the turmoil has not affected the movement of ships through Suez Canal, a major waterway for global trade.
About a fifth of India's exports are routed through the Suez Canal valued at about USD 40 billion. About 30 per cent of the global trade takes place through this waterway, which connects Red Sea with the Mediterranean Sea.
"Egypt crisis is not directly connected to trade. There have been concerns expressed, but the shipping routes as such have not been affected at all with the turmoil that is taking place. Therefore, there is no need for any concern," Commerce and Industry Minister Anand Sharma told reporters in New Delhi.
Closure of the Suez Canal might affect India's sea borne trade to Europe and east coast of America and in that case Apex body of exporter FIEO had expressed concerns that in the eventuality of movement of shipments through an alternative route (around South Africa), it would add about 15-20 days to the voyage time, which will result in delays or cancellation of export orders.
Sharma further said India's exports are on course to meet the USD 200 billion target for the current fiscal.
The political situation in Egypt is locked in a stalemate as demonstrators are demanding immediate resignation of President Hosni Mubarak, who has been ruling the nation for three decades, and are still continuing protests on the streets of Cairo.