How has Red Sea trouble impacted India?

Subject: IR

Section: Places in news

Context:

A spate of attacks on cargo ships in the Red Sea since November by the Houthi militia of Yemen has turned the quickest marine route linking Asia with Europe through the Suez Canal unsafe.
It has forced freighters to take a longer transit around the Cape of Good Hope in Africa’s southern tip, making shipments both dearer and longer to deliver.

Why Are Attacks Happening?

Yemen’s backed Houthi have been targeting vessels in the Red Sea since November to show their support for the Hamas in the war against Israel.

Importance Of Red Sea Trade Route

Historical significance – red sea has been one of the most important route since ages that connected many civilizations and continents i.e. Asia, Africa, Europe.
Economic significance – Suez Canal since its inception in 1869 has been the busiest trade route that reduced distance between Europe and Asia by 7000km.
Geopolitical significance -because of its economic importance and strategic location (narrow width of Suez Canal) it has also become geopolitically significant.

How have the Red Sea attacks impacted freight rates?

Ever since the attacks along the Bab-el-Mandeb Strait began earlier this month, global shipping firms have begun imposing war risk surcharges over and above the normal freight rates.
Indian exporters said that freight rates for Indian shipments headed to Europe and Africa could surge as much as 25-30 per cent if the ongoing security concern along the Red Sea trade route continues.
This is troubling, as the European Union is one of India’s second-largest export destinations. Slowing demand from the region has impacted India’s labour-intensive sectors, such as textiles, gems and jewellery exports.

Measures Taken by India

The Indian Navy has substantially enhanced maritime surveillance efforts in the central/north Arabian Sea and augmented force levels.
Task Groups comprising destroyers and frigates have been deployed to undertake maritime security operations and render assistance to merchant vessels in case of any incident
Aerial surveillance by long-range maritime patrol aircraft and RPAs remotely piloted aircraft has been enhanced to have complete maritime domain awareness.
Towards effective surveillance in economic exclusive zone , the Indian Navy is operating in close coordination with the Indian Coast Guard.
The Indian navy is monitoring the overall situation in coordination with national maritime agencies.
US Defense Secretary Lloyd Austin announced the creation of Operation Prosperity Guardian to protect Red Sea commerce but India is yet to decide on joining it.