India has been forced to reorient the deliveries of some of its exports to European countries from sea to air transport due to the escalating tension in the Middle East, the executive director of the Federation of Indian Export Organizations (FIEO) Ajay Sahai told the newspaper The Economic Times.
"The crisis in the Middle East is leading to a transfer of a significant volume of Indian exports to European countries from sea to air transport. They will increase by 10%-15% with the increase in the delivery time of cargo due to the inability to fly over Iranian territory,“ Sahai said.
The increase in delivery time and insurance premiums will increase its cost by 40%-60% and will lead to a delay of approximately 20 days in receiving the goods. Indian exports, particularly of engineering products to Europe under new agreements with importers, will suffer by 30%-35% as a result, the FIEO chief added.