After Hamas, a terrorist organisation headquartered in palestine, fired 5,000 rockets into israel and began firing at citizens in residential areas, israel was the target of a significant terror onslaught. Thousands have been hurt and more than 300 people have died thus far. india, one of Israel's most enduring and powerful friends, has expressed support for the nation and is anticipated to provide assistance should events in Tel Aviv worsen. prime minister Narendra Modi expressed astonishment at the latest events and denounced the horrific act.

Global inflation may result from the terror attack and subsequent retaliation between israel and palestine if they escalate into a full-fledged war. The effects on the economy may be comparable to those that occurred at the beginning of the conflict between russia and Ukraine. india may be particularly affected because israel is one of its main trading partners. India's 10th largest trading partner worldwide and its third-largest in Asia is Israel. israel is India's second-largest supplier of military hardware behind russia, with about Rs 74,000 crore worth of military trade between the two countries.

The trade deal between israel and palestine may be significantly impacted by the conflict, which would severely harm India's defence budget and system. This implies that india may have to rely more on the more costly military hardware from Russia. Precious stones and metals, electronic devices, fertilisers, machinery, engines, pumps, medical and technical equipment, organic and inorganic chemicals, salt, sulphur, stone, cement, and plastics are among Israel's top exports to India. All of these items are necessary for large factories and industries.

India presently receives approximately USD 3 billion worth of Israeli products and equipment exports. This implies that india would miss out on commodities worth Rs 25,000 crore if the terror strikes and war force the two nations to cease their bilateral commerce, which would raise the price of some household goods. The world was affected by the inflation brought on by the Russia-Ukraine conflict, but russia decided to keep supplying india with military hardware in spite of the volatile circumstances there. As of right now, it is anticipated that israel would maintain the running of its economy by upholding its half of the bilateral trade deal.
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G GOWTHAM

12/10/2023 09:18 AM