00:00 Just last week, an attack on a tanker off the western coast of India sent shockwaves through the country.
00:06 The vessel, carrying valuable oil from Saudi Arabia to the Mangalore port in southern India,
00:11 fell victim to an explosion and fire.
00:14 This incident has prompted India to take decisive action and deploy three warships to the Arabian Sea,
00:20 serving as a "force deterrent" in the precarious Red Sea region.
00:24 The increasing economic and military power of India has filled some of its powers with jealousy and hatred.
00:36 The drone attack on the Yamvicham Pluto in the Arabian Sea and the attack on the Yamvi Sai Baba in the Red Sea
00:46 were seriously taken by the Indian government.
00:50 The Indian Navy has increased its maritime surveillance. Whoever has committed this attack,
00:56 we will also throw them out of the sea and a harsh action will be taken against them.
01:02 I want to assure you.
01:04 Why has India found itself in this tough spot?
01:09 Well, the answer lies in the sheer volume of trade flowing through the Red Sea.
01:13 Approximately 200 billion dollar worth of India's exports pass through this vital maritime channel.
01:20 Any disruption to the stability and security of this route poses a significant threat to India's economy
01:25 and as well as to the global trade ecosystem.
01:28 So, what exactly is the Red Sea crisis, and why has India deployed warships?
01:33 How will this crisis affect India and global trade if the Red Sea turns into a battleground?
01:39 Join us as we explore the intricacies of this evolving situation and its potential ramifications on the world stage.
01:45 Israel's War With Hamas Has Thrown The Entire Middle East Into A Crisis
01:52 Israel's war with Hamas has thrown the entire Middle East into a crisis.
01:57 Israeli army's ongoing operations in the Gaza Strip have angered several Arab nations,
02:02 sparking protests by thousands on the streets across the region.
02:06 Opening a new front against Israel, Yemen's Houthi rebels have launched several drones towards the country in last few months.
02:14 What started as a regional conflict has now spilled over to the global stage,
02:18 with the rebels deciding to target ships passing through the Red Sea.
02:22 Cargo ships found themselves in the crossfire on December 3rd when a Houthi attack hit three ships.
02:28 Since then, the situation has continued to worsen as the rebels escalated their attacks on the ships.
02:35 Several companies have refused to take the route and have diverted the shipments to the Cape of Good Hope.
02:40 Houthis vowed to "prevent Israeli ships from navigating the Red Sea and Gulf of Aden
02:46 until the Israeli aggression against our steadfast brothers in the Gaza Strip stops."
02:51 The West has been forced to come to the defense of ships passing through the narrow channel.
02:56 United States Navy has shot down several drones to protect global supply chains as part of its Operation Prosperity Guardian.
03:03 Some chinks have appeared in the strategy as American ally EU backtracked
03:07 after committing to join the operation to protect the ships.
03:11 The Houthis' reckless attacks on commercial shipping in the Red Sea
03:15 threaten the free flow of commerce in the region's vital waterways,
03:19 endanger innocent ship workers, and are a flagrant affront to international law.
03:24 Simply put, these attacks threaten global prosperity.
03:28 Yesterday, the Department of Defense announced the establishment of Operation Prosperity Guardian,
03:33 a multinational security initiative focused on advancing security in the Red Sea in the face of this threat.
03:39 United States and Iran have traded blows over the situation.
03:43 President Biden's administration has blamed the Iranian regime for the crisis,
03:47 while Tehran has rejected the allegations.
03:50 Anyone thinking of taking advantage of the situation, I have one word, don't. Don't.
03:58 Not only Houthis, Iran-backed Hezbollah has also attacked Israel, sparking fears of widening of conflict.
04:05 Iran has vociferously opposed Israel's attacks on the Gaza Strip.
04:09 Visuals of meeting with Hamas leadership have also gone viral in the past two months.
04:15 Red Sea turning into a battlefield has come as a setback for India at a time
04:19 when exports have seen a decline in the first eight months of the financial year.
04:23 India's trade with Israel is also expected to see an impact as it depends on Eilat port
04:28 located on the southern coast of the country.
04:31 Ships taking the Cape of Good Hope route would hurt shipments to India due to increase in cost and time.
04:37 For example, a ship from Italy to India would take nine days to reach the country via the Ray Sea route
04:43 but three weeks if it comes from the Cape of Good Hope.
04:46 Indian exporters are anticipating an increase in freight rates of up to 25%
04:51 and a rise in insurance premiums as well.
04:54 Experts express concern that if the disruption continues for an extended period,
04:58 trade could suffer significantly.
05:01 The ongoing attacks by Iran-backed rebels could also fuel imported inflation
05:05 and lead to higher costs of capital goods and raw materials for corporate India,
05:09 which is on the verge of a new investment cycle.
05:12 India also heavily relies on fuel shipments from the Middle East,
05:16 particularly from Saudi Arabia and Iraq.
05:19 Any disruption in this route can be problematic for India's demand for oil
05:23 and can lead to huge spike in oil prices.
05:26 That's not the end.
05:28 The disruption in the Red Sea route will push up the prices of Indian agricultural products
05:33 by 10 to 20% since shipments would need to be rerouted.
05:37 Additionally, the Middle East issue will also impact Basmati rice shipments.
05:42 According to a report, the government may need to explore an alternative route for shipments,
05:47 which could result in a price increase of about 15 to 20%.
05:51 Leaders are now worried about the escalation of the crisis in other important trade routes.
05:56 Prime Minister Narendra Modi had earlier called for dialogues and restraint
06:00 to deal with the Israel-Hamas crisis.
06:03 India had also voted in favor of a humanitarian ceasefire in the United Nations.
06:08 But there is no end in sight for the conflict which has dragged on for over two months.
06:13 The costs of the crisis are now being paid by countries across the world
06:18 as Houthi rebels vow to continue the attacks.
06:21 [Music]
Comments