Delhi: Iran’s Foreign Minister Abbas Araqchi announced to completely open the Strait of Hormuz till the ceasefire lasts. This decision has brought great relief to the entire Asian countries. India is going to get tremendous relief with the reopening of the Strait of Hormuz. The challenge of energy supply facing India will end. By improving the supply chain, the supply of LNG, LPG and crude oil will become normal, due to which petroleum products will be easily available to the needy across the country at earlier prices.
These will be the big benefits of opening the Strait of Hormuz
The Strait of Hormuz is very important for India’s energy security. Major energy needs of the country are met through this narrow sea route. India imports about 45 to 50 percent of its total crude oil imports and more than 50 percent of its LNG (Liquefied Natural Gas) imports through this route. About 1.5 million barrels of oil per day are also supplied through the Strait of Hormuz, which is essential for the country’s energy needs and economic stability. After the opening of the Strait of Hormuz, import of petroleum products will become easier.
India meets 85 percent of its crude oil needs through imports, in which Gulf countries – Saudi Arabia, Iraq, UAE and Kuwait have the highest share. In such a situation, with the reopening of the Strait of Hormuz, the obstacles will end and India’s energy supply will become normal.
After the opening of the Strait of Hormuz, the prices of crude oil will fall further in the international market. This will provide relief to India’s increasing trade deficit. The pressure on inflation rate will reduce in the coming days. The additional burden on foreign exchange reserves will be eliminated. Shipping insurance and freight costs will be reduced.
With the clearing of the Strait of Hormuz, export of other goods from India will also become easier, which will provide great relief to Indian exporters. Their goods will be able to reach other countries of the world on time and at the right cost.
Apart from petroleum, it will be easy for India to import other essential goods. Ships will be able to reach India on time. With this, the prices of these goods will come back to their previous level in India.
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