New Delhi, March 2 IT industry’s apex body Nasscom on Monday said it has advised member companies to defer travel to affected areas amid the evolving situation in the Middle East.
Member companies have also been advised to enable work-from-home arrangements for employees currently in the region, said Nasscom in a statement.
“We are in constant touch with the Nasscom Middle East Council and advise all employees in the region to remain in regular contact with their respective local embassies and take all necessary precautions as communicated by relevant authorities and employers,” said the industry body.
Operations across the industry are continuing as usual at this stage, while member companies remain vigilant and prepared to take additional measures as required.
“Employee safety and security remain the industry’s foremost priority,” said Nasscom.
The ongoing war involving US-Israel and Iran is quite worrying for the exporting community, said the industry.
“As far as engineering goods are concerned, Saudi Arabia and the UAE are among our key markets. Moreover, they act as a gateway to our exports to the WANA region. It seems the war is escalating, which could not only disrupt engineering exports to this region but may also affect some of the trade routes,” said Pankaj Chadha, Chairman, EEPC India.
As has been indicated by many experts in geopolitics, the Strait of Hormuz, through which 20 per cent of global oil flows, could be blocked.
“This will not only lead to a spike in energy prices but also push up freight costs significantly. We have already been reeling under tariff pressure from the US and the after-effects of the Russia-Ukraine war. The latest development adds to our concerns and may affect our exports badly,” Chadha added.
The overall situation seems very volatile. Trade disruptions to this region, especially the UAE and Saudi Arabia, mean a substantial impact on our shipments. All the factors combined are set to increase input cost, thus putting further strain on our revenue and profitability, said the EEPC India.
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