Israel Hamas War: The impact of the ongoing war between Israel and Hamas in India is beginning to be seen on the Indian market and economy. The demand for gold and silver has increased in the physical market. Due to this, the premium on gold has increased rapidly. Due to this, the prices of gold and silver (Gold-Silver Price Hike) has also increased. It is being told that the premium on gold has increased by seven thousand rupees. Now the premium on 10 grams of gold has become Rs 2,000. Earlier the premium on 10 grams of gold was only Rs 1300. Due to high premium, bullion traders at many places have refused to sell gold. Whereas, the premium on silver has increased by one thousand rupees per kg. At present the premium on silver is Rs 3500. Earlier it used to cost only Rs 2500. Indian bullion traders are facing this problem at a time when the demand for gold has increased in the Indian market. Due to the festive and wedding season, there is a surge in demand every year from October to December. 700-800 tonnes of gold is consumed every year in India. But, out of this only 1 tonne is produced in India. The remaining gold in the country is imported from outside.
Insurance premium and shipping will also be affected
Experts believe that Indian exporters sending goods to Israel may face higher insurance premiums and shipping costs due to the Israel-Hamas conflict. Hamas terrorists launched an unexpected attack on Israel on Saturday during a major Jewish holiday, worsening the situation there. International trade experts believe that the conflict may reduce the profits of domestic exporters, although it will not have any impact on the size of trade unless the situation worsens. Research institute Global Trade Research Initiative (GTRI) said on Sunday that the struggle for India’s merchandise exports could lead to an increase in insurance premiums and shipping costs. 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.
The situation will become serious due to port being affected
Mumbai-based exporter and founder president of Technocraft Industries India, Sharad Kumar Saraf, said that if the situation worsens, things could get worse for our exporters from that region. Whereas, GTRI co-founder Ajay Srivastava said that trade could be seriously affected if operations at Israel’s three largest ports, Haifa, Ashdod and Eilat, are disrupted. India-Israel trade in goods and services sectors is estimated to be US $ 12 billion in 2022-2023. Indian companies like Sun Pharma, Tata Consultancy Services, Wipro, Tech Mahindra, State Bank of India, Larsen & Toubro and Infosys have presence in Israel. Israeli companies have invested in renewable energy, real estate and water technologies in India. They are also setting up research and development centers and production units in India. Between April 2000 and June 2023, Israeli companies have invested US$286 million (FDI) in India.
Air India canceled Tel Aviv flights till October 14
Air India has canceled all flights to Tel Aviv, Israel till 14 October. 14 employees of the company have returned to India from Tel Aviv. After the attack by Hamas terrorists on Israel’s Tel Aviv on Saturday, a war-like situation has arisen there. A company official said that a total of 14 personnel including crew members have returned to New Delhi from Tel Aviv to Ethiopia flight. An airline spokesperson said that keeping in mind the safety of passengers and crew members, all flights to and from Tel Aviv have been canceled until October 14, 2023. According to Air India spokesperson, all possible support will be provided to the passengers who have booked tickets for this period. The airline operates five weekly flights to Tel Aviv. These flights are operated on Monday, Tuesday, Thursday, Saturday and Sunday. The airline had also canceled its flights to and from Tel Aviv on Saturday.