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Business and War: Manipur and the Middle East

How is the war with Hamas hurting Israeli tech companies and the economy? The country’s technology sector – a vital part of the economy that accounts for almost half of all exports and one-third of Israel’s economic output – struggles with worker shortages and funding concerns. The operations of many companies have been disrupted not only because of the conscription of 350,000 reservists. Labour shortages, lower consumer and business confidence, higher inflation and declining foreign investment negatively impact Israel’s economy.

The conflict in the Red Sea and attacks on ships by Houthi militias are hitting shipping companies that transport goods on one of the busiest trade routes. Sending ships through the Red Sea raises the risk of attacks and increases the cost of insurance premiums. The vessels can also sail several thousand kilometres around Africa, adding ten days to the journey each way and burning significantly more fuel. The Houthis most often attack ships transporting cars and rarely tankers.

More than eight months of ethnic conflict in the Indian state of Manipur between the Meitei community and the Kuki tribes has led to losses in the economy and businesses, from small street vendors to large companies. Retail inflation has reached 11.63%, the Internet has been down for an extended period and curfews are disrupting the normal functioning of society. Some companies have recorded losses of over 70%, forcing them to lay off employees.

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