India has no immediate plans to redeploy its domestically flagged vessels to the Persian Gulf, as heightened security concerns and escalating insurance costs continue to weigh on maritime operations, a senior government official said.
Speaking at an inter-ministerial briefing on developments in West Asia, Rajesh Kumar Sinha, Special Secretary at the Ministry of Ports, Shipping and Waterways (MoPSW), indicated that the situation has not yet stabilised enough to permit the return of Indian-flagged ships to the region.
“We are yet to reach the stage where we start sending them back,” Sinha said, underscoring that India’s top priority remains safeguarding its energy security.
The current situation has left several vessels stranded in the region. These include three foreign-flagged ships carrying Liquefied Petroleum Gas (LPG), four crude oil tankers, and three Liquefied Natural Gas (LNG) carriers, all bound for India.
Despite the challenges, authorities confirmed that 18 Indian vessels remain in the Persian Gulf with 485 Indian seafarers onboard. All crew members are reported safe, with no maritime incidents recorded in the past 24 hours.
In a positive development, two LPG carriers transporting around 94,000 metric tonnes successfully transited the Strait of Hormuz over the weekend and are now en route to India. One vessel is expected to berth at Mumbai Port, while the other is scheduled to arrive at New Mangalore Port.
However, Sinha cautioned that risks are not confined to the Strait of Hormuz alone. “The affected area extends beyond the Strait, with surrounding waters also classified under the High-Risk Area (HRA),” he said.
The widening risk zone has triggered a sharp surge in insurance premiums. War risk premiums, which previously stood at approximately 0.04% of the insured value, have spiked significantly—reaching as high as 0.7% in some cases—and could rise further depending on the evolving security environment.
Highlighting the broader implications, Sinha noted that India’s trade remains heavily reliant on maritime routes, with around 95% of foreign trade by volume and 70% by value moving through sea lanes.
To mitigate the impact and ensure continuity in shipping operations, the government is actively working on establishing a dedicated war risk insurance pool.
The situation continues to be closely monitored as geopolitical tensions in the region show little sign of easing.
