NEW Delhi: The Indian government is actively exploring support measures for domestic shipping companies and exporters as insurance costs have shot up due to the war-risk premium that is being levied due to the Iran war, which has engulfed the Middle East region, according to a senior Finance Ministry official.
Industry stakeholders have flagged the sharp increase in insurance costs during consultations held by Shipping Secretary T.K. Ramachandran and Department of Financial Services Secretary M. Nagaraju with exporters and shipping companies to assess the impact of the West Asia conflict on shipping costs and export logistics.
Exporters and shipping companies raised concerns over the surge in war risk premiums for vessels operating through key maritime corridors linked to West Asia, including routes around the Strait of Hormuz. The increase in insurance costs, along with possible rerouting of vessels to avoid conflict zones, has raised logistics expenses for Indian exporters. (IANS)
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