UNCTAD worries over global trade; CRISIL assesses India's sectoral impact

The United Nations Conference on Trade and Development (UNCTAD) has expressed concern over the escalating disruptions in global trade stemming from geopolitical tensions that have escalated following Houthiled attacks disrupting shipping in the Red Sea.

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Maritime transport plays a critical role as the backbone of international trade, as it is responsible for over 80 per cent of the global movement of goods. The recent attacks on Red Sea shipping, coupled with existing geopolitical and climaterelated challenges, have given rise to a complex crisis affecting key global trade routes, UNCTAD observes. As per UNCTAD estimates, the weekly transits going through the Suez Canal has decreased by 42 per cent over the last two months. According to CRISIL Ratings, the impact of the ongoing crisis around the Red Sea in the Middle East, on India, is expected to vary depending on the industry and sector-specific and trade nuances.