Suez Canal Blockage

INDIA - In Brief 26 Mar 2021 by Ila Patnaik

The blockage in the Suez Canal is an important problem for global trade. It is particularly important for India. Increased costs of transportation are tantamount to a government-induced barrier to trade.The two biggest ports of India, at Nhava Sheva and Mundra, are on the West Coast. Indian trade with Europe and the Americas particularly gains from the Suez Canal, as riding up through the Red Sea into the Mediterranean is shorter than going around the Cape of Good Hope. Undivided India was the biggest beneficiary of the construction of the Suez Canal in 1869.A blockage in the Suez Canal would not adversely impact East-bound traffic. Some ships to the US would reroute through the Straits of Malacca to reach the US West Coast. There would be a significant adverse impact on India-European trade and inconvenience in reaching the US East Coast.

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