Eastern Maritime Corridor could aid India in the midst of Red Sea Crisis

The Red Sea crisis, exacerbated by attacks on commercial ships by Iranian-backed Houthis, is altering global trade routes and creating major challenges to commodity markets. The disruption of shipping on the Red Sea trade route is projected to cause inflation, at least in the short term. Soaring shipping and oil prices will keep inflation simmering, potentially harming the global economy.

Almost 80% of India’s trade with Europe is conducted through the Red Sea. However, the logistics industry is facing a new issue as the Yemeni Houthi militia is attacking ships, disrupting the maritime route, which is an essential conduit for East-West Trade.

 

Eastern Maritime Corridor as a Strategic Alternative:

The Eastern Maritime Corridor (EMC), according to Indian Minister for Ports, Shipping, and Waterways Sarbananda Sonowal, could be a valuable substitute for the transportation of products given the geopolitical conditions in the Red Sea and Suez Canal. It will also provide India with numerous chances.

He emphasised that the EMC uses the Malacca Strait, the South China Sea, and the Sea of Japan to link ports on the east coast of India with ports in Far East Russia.

The situation in the Red Sea, which affects maritime commerce, is serious. India values both freedom of commerce and navigation and its government has taken the necessary steps to maintain maritime security so that commercial vessels can sail freely. The ministries concerned are taking action in this regard, he said.

 

India-Russia Maritime Partnership:

“We may see Russian icebreakers being built at Indian shipyards. These are encouraging possibilities of India-Russia Maritime Partnership,” Sonowal further said after inaugurating the India-Russia workshop for ‘Operationalisation of the Eastern Maritime Corridor’ in Chennai.

“I am also optimistic about the many prospects for deepening our bilateral maritime cooperation, particularly in the two countries’ maritime skill development and training, shipbuilding and port-brd clean energy investments. Indian seafarers will be equipped in Russia with the necessary training to undertake polar voyages for Arctic shipping,” he said.

According to the minister, the corridor holds enormous potential for opening new trade routes and promoting resilience and prosperity in both economies. According to him, the corridor will be more viable because of the time and fuel savings.

According to Anatoly Yuryevich Bobrakov, the Russian Federation’s Deputy Minister for the Development of the Far East and the Arctic, more than $130 billion has already been invested in Russia’s oil and gas industries. Russia sees India as a strategic ally and diligently pursues the development of bilateral ties via improved trade links. He invited Indian delegates to the 9th Far Eastern Economic Forum, which would take place in Russia in September 2024.

The Red Sea crisis threatens global trade, but India’s strategic pivot towards the Eastern Maritime Corridor provides a possible solution. India intends to secure its commercial interests and contribute to the stability of the global maritime trade network by investigating the possibility of this alternate route and improving ties with Russia.