A recent EY report emphasizes that India must diversify its trade routes to reduce its reliance on the Strait of Hormuz. The report highlights the strategic importance of developing alternative corridors, such as the India-Middle East-Europe Economic Corridor (IMEC) and the Indo-Pacific route via the Malacca Strait, to enhance economic resilience against global trade shifts and geopolitical instability.
The analysis suggests that India needs to recast its growth strategy, potentially by increasing strategic reserves for critical commodities like crude oil and accelerating the transition to green energy sources. These measures are vital for mitigating economic shocks and safeguarding the nation's long-term economic trajectory amidst an evolving world trade order.
