India’s engineering shipments hit by Qatar crisis

Sheela Mamidenna

Engineering exports from India to Qatar have been impacted after sanctions were imposed on Doha by some Arab countries, said Engineering Export Promotion Council (EEPC) India on Wednesday.

Bahrain, Saudi Arabia, UAE and Egypt had last week announced the suspension of all relations with Qatar over the country’s alleged support for terrorist groups and its political closeness to the Shi’ite majority nation of Iran. Qatar denies these allegations.

“Inputs from our engineering exporters indicate that shipping lines operating between India and Doha are keeping the containers on hold. A few such incidents have been reported from Jebel Ali and Krishnapatnam ports,” EEPC India said.

Suranjan Gupta - Addl. Executive Director, International Trade Facilitation Centre, speaking to the Dollar Business confirmed that "some shipping lines containing engineering products have been held up on their way to Qatar. Qatar is an important destination for Indian engineering products and on an average $250 million to $350 million worth of these goods are exported to that country. And the Indian government is taking all steps to see that the goods reach their intended destination. Things are easing up and the shipping lines will soon be on their way.”

India’s shipments are being hit as West Asia and Middle East trade has substantial inter–operability between various ports. As a result financial and banking transactions have taken a hit in Qatar and other parts of West Asian region.

West Asia and the Middle East are key destinations for engineering exports from India, making up around 13% of the overall engineering exports from the country. Around $8.18 billion worth of shipments is sent to various countries in that region. India’s key trading partners are Saudi Arabia, UAE and Oman.

EEPC India Chairman T S Bhasin, while expressing apprehensions over the current crisis, said that India’s trade and business have a major stake in that region and it is vital to keep a close watch on the rapidly changing situation there.

The engineering exports to the Middle East and West Asian region include non–ferrous metals, iron and steel, electrical and industrial machinery.