Indian exporters have expressed growing concern over the prolonged crisis in West Asia, warning that disruptions to key shipping routes, rising logistics costs and supply chain uncertainties are beginning to affect export business.
The concerns were raised during a meeting between Union Commerce and Industry Minister Piyush Goyal and export promotion councils on Wednesday, according to industry sources.
Exporters highlighted that continued instability in the region, including disruptions affecting the Bab el-Mandeb shipping route, has created uncertainty in shipping schedules, resulting in delays in order execution. Overseas buyers have also become increasingly cautious, with some requesting extensions to delivery timelines while others have deferred placing new orders.
Industry representatives said the situation has also led to higher freight and logistics costs, liquidity pressures and concerns over the availability of raw materials.
Trade bodies, including Federation of Indian Export Organisations (FIEO), have urged the government to introduce a fresh package of support measures to help exporters manage the ongoing challenges.
Sources familiar with the discussions said the minister received detailed feedback on the evolving situation. Goyal is also understood to have supported additional assistance for service exporters, particularly those in the hospitality and medical tourism sectors.
Speaking later at the JRD Tata Memorial Lecture organised by Associated Chambers of Commerce and Industry of India, Goyal said India’s economy has remained resilient despite heightened global uncertainties.
“In the first quarter of FY27, war continues. Petrol, crude, gas and diesel have all faced uncertainty. Hormuz has been opening and closing through this period. Now we have the Red Sea crisis; it is only expanding. Despite that, our merchandise exports have grown by 15% so far in the current fiscal,” Goyal said.
The minister also acknowledged that a trust deficit between businesses and the government has persisted despite several reforms, adding that the Centre is working to improve the ease of doing business and reduce the compliance burden to support industry growth.
