This comes a week after the Ministry of  Trade  and Industry  asked  DFS to maintain credit  flows  to  exporters amid  disruptions  in the Red Sea region that could  affect more than 80%  of  exports to  Europe , after  an inter-ministerial meeting on  Jan.  17. 

  The  Ministry of  Finance  is  expected  to hold a high-level meeting on February 5 to ensure smooth trade payments amid challenges  from disruptions  in the Red Sea region.  The payment  settlement  mechanism  for  disrupted trade routes  as well as outstanding  issues  related  to vostro accounts are likely to be  discussed during  the meeting, officials said. 

  The meeting,  chaired by  Secretary  Department of Financial Services (DFS)  Vivek Joshi, will  bring together  officials from the  Ministries  of Finance, Commerce and Industry, External Affairs, Reserve Bank of India (RBI) and  the  Insurance  Management  and Development  Agency. Government  of India (IRDAI). 

  “This  is a  planned  coordination meeting  between government  ministries,  regulators and banks to discuss  trade-related  payment issues.  The aim  is to  listen to  all stakeholders and find solutions for orderly  business  transactions and  settlements,”  a senior government official told The Indian Express.

  This comes a week after the Ministry of  Trade  and Industry  asked  DFS to maintain credit  flows  to  exporters amid  disruptions  in the Red Sea region that could  affect more than 80%  of  exports to  Europe , after  an inter-ministerial meeting on  Jan.  17.  

 Freight rates  for transporting goods  to Europe have more than doubled due to security  tensions  in the Red Sea region.  Concerns about disruption in the Red Sea region have grown and oil prices have begun to rise since the US and UK attacked Houthi rebels in Yemen earlier this month in retaliation for attacks on US commercial vessels. They are in the Red Sea area. 

 India’s export shipments of low-value products such as agricultural products and textiles to Europe are expected to mainly face the impact  of disruptions in the Red Sea region  due to  shipping  costs.  transfer increases. Previously,  the government  asked  the  Export Credit Guarantee Corporation (ECGC) not to  increase  insurance premiums  in response to  rising  shipping  costs  to Europe. 

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