Israel-Hamas war hurts Indian maritime summit as delegates skip visit

With oil prices volatile since September, experts warn of a further surge if the dispute spreads beyond Gaza.

The Israel-Hamas war is expected to hit attendance of the upcoming Global Maritime India Summit – 2023, with many senior government officials from Greece, Egypt, Israel and Turkey cancelling travel plans to India, several government officials told Moneycontrol.

"Senior leadership from Israel and Egypt were expected to travel to India for the global summit, but have cancelled travel plans after the horrific attacks by Hamas against Israel sparked a war in the region," a senior government said.

He added that around 10 senior officials and executives from Israel, including former Ambassador of Israel to India Ron Malka, now Executive Chairman of Haifa Port Co, were expected at the summit, but have now backed out.

The Hamas militant group, which rules the Gaza Strip, launched a surprise and unprecedented attack by air, land and sea against Israel on the morning of October 7. Israel retaliated with attacks against the Gaza Strip.

"Israeli officials as well as businesses who had earlier confirmed their attendance are now dropping out as the Israel-Hamas war rages. While some are still registered for attendance, there is a high probability they will not be able to attend," another senior government official said.

He added that the event is still seeing huge interest from American businesses who are keen on investing in India.

Industry insiders who closely track the sectors told Moneycontrol that senior officials from Greece, Egypt, and Turkey who were earlier expected to attend the event are also likely to back out due to the ongoing conflict.

On October 10, Prime Minister Narendra Modi told his Israeli counterpart Benjamin Netanyahu that the people of India stand firmly with his country in this difficult hour, expressing strong and unequivocal condemnation of terrorism in all its forms and manifestations. Netanyahu called up Modi to update him on the ongoing situation.

"Prime Minister Narendra Modi's expression of solidarity with Israel is likely to have rubbed officials from the Middle Eastern countries the wrong way," a senior shipping analyst working with an international agency said.

He added that executives from the Suez Canal Authority which owns, operates, and maintains the Suez Canal have cancelled plans to attend the Global Maritime India Summit.

Another industry expert said that executives and government officials from the United Arab Emirates, Oman, and Turkey are also said to be in two minds about attending the upcoming event.

"India's growing relationship with Israel in the past few years and recent developments have bumped a few Middle Eastern states the wrong way," the second executive said.

Earlier this week, ports, shipping & waterways Minister Sarbananda Sonowal invited investors to participate in various industries, thereby creating an expansive canvas for growth.

"With a potential investment exceeding Rs 10 lakh crore (US $12,000 million), we have the capacity to propel economic transformation within our borders and resonate on a global scale. Recognising the pivotal role of robust international trade relations in our economic growth, we are actively pursuing initiatives to foster global collaboration within the maritime sector," Sonowal had said on October 9 in Mumbai.

The Shipping ministry's biggest maritime event is scheduled from October 17 to 19 at MMRDA Grounds, BKC, Mumbai. GMIS 2023 was expected to draw participation from more than 70 countries.

A cadre of senior ministers from the UAE, South Africa, Armenia, Italy, Sri Lanka, Turkmenistan, Belarus, Bangladesh, and Madagascar were expected to attend the summit which starts on October 17.

Also Read: What's the Israel-Palestinian conflict about? The origin of wars explained

The summit was expected to host over 250 national and international speakers and senior executives, in addition to conducting more than 20 thematic sessions, including 7 international roundtables and more than 13 sectoral and state discussions.

Discussions are planned on regional cooperation in BIMSTEC countries, Chabahar and INSTC (International North–South Transport Corridor), Africa, Indo-Pacific, Europe, and the newly launched IMEC (India-Middle East-Europe Economic Corridor).

The 3rd edition of the Global Maritime India Summit 2023 is going to be much bigger and more inclusive than the previous two summits organised in 2016 and 2021 in terms of scale and participation.

A full-blown war between Israel and Hamas has also sparked concerns over the impact of the conflagration on a world that is already reeling under the economic impact of the ongoing conflict in Ukraine.

With oil prices volatile since September, experts warn of a further surge if the dispute spreads beyond Gaza.

“If other countries start getting involved, like Lebanon and Egypt, then global oil prices could shoot up to $95-100 per barrel and that is when it really starts getting problematic,” says Prabal Sen, Research Analyst at ICICI Securities.

The US move to dispatch warships to assist Israel and reports suggesting that Iran had helped Hamas have stoked fears of the war spreading to other nations in the region.

Also Read: A brief history of Israel-Palestine conflict

Earlier this week Global Trade Research Initiative warned that shipping costs and insurance premiums for Indian companies exporting to Israel are set to rise if the Israel-Hamas war continues.

“For merchandise exports of India, the war may lead to higher insurance premiums and shipping costs. India’s ECGC may charge higher risk premiums from Indian firms exporting to Israel," Global Trade Research Initiative said.

According to Ajay Srivastava, founder of GTRI, if ports are targeted at a later stage during the conflict, premiums will shoot up further.

Trade may be seriously impacted if operations at the three largest ports of Israel – Haifa, Ashdod, and Eilat – are disrupted. These ports handle shipments in agricultural products, chemicals, electronics, machinery and vehicles, GTRI said in a note.

U.S. President Joe Biden on October 11 warned Iran against getting involved in Israel's conflict with Hamas amid fears of a wider regional conflict, while Israeli leaders formed an emergency war cabinet to present a united front.

On October 11, in the first outreach from India to the Arab world following the escalating conflict, External Affairs Minister S Jaishankar discussed the "crisis" in West Asia with his counterpart from the UAE Sheikh Abdullah bin Zayed Al Nahyan.

The two foreign ministers deliberated on the evolving situation during a phone conversation. Jaishankar is currently on a visit to Sri Lanka.

"Spoke to Foreign Minister @ABZayed of UAE this evening. Discussed the ongoing crisis in West Asia. Agreed to stay in touch," the External Affairs Minister posted on X.

Jaishankar also announced that the Government of India is launching “Operation Ajay” to facilitate the return from Israel of Indian citizens who wish to return. He wrote on social media platform X.

“Special charter flights and other arrangements are being put in place. Fully committed to the safety and well-being of our nationals abroad,” the minister said.

The multi-pronged attacks against Israel by Hamas militants from Gaza since Saturday and the subsequent Israeli retaliation have left around 2,150 people dead.

The Israeli authorities said more than 1,200 people, including 155 soldiers, have been killed in Israel while the Palestinian side put the death toll in Gaza at 950.

In a statement on October 7, the foreign ministry of the UAE called for exercising utmost restraint and an immediate ceasefire. The sudden escalation in hostilities between Israel and Palestine has triggered global concerns.

Leading powers like Germany, the US, France and the UK emphasised the importance of preventing the situation from further escalation.

The Indian stock markets remained resilient on Monday, without witnessing any panic sell-offs.

The intensifying dispute in the Middle East has shifted attention toward various Indian companies that have operations in Israel or are otherwise exposed to the war-hit country.