India Inc, led by the Confederation of Indian Industry (CII), has backed the government’s response to emerging trade disruptions caused by the ongoing Iran-related conflict, even as exporters grapple with rising costs and logistical challenges.
CII noted that the conflict in West Asia has begun to strain key supply chains, with delays in shipments and disruptions in the flow of critical raw materials impacting multiple sectors. Exporters, particularly those dependent on Gulf markets, are facing higher freight rates, war-risk insurance premiums, and uncertainty over delivery schedules.
Industry leaders said the government has responded proactively, rolling out support measures and closely monitoring the situation to ensure continuity in trade. Recent initiatives aimed at easing logistics pressures and providing financial support to exporters have been welcomed by businesses navigating the volatile environment.
The disruptions stem from instability in crucial maritime and air corridors linking India to West Asia and beyond. Shipping routes have been affected, forcing rerouting and increasing transit times, while insurance costs have surged due to heightened geopolitical risks.
CII emphasised the importance of coordinated action between the government, exporters, and logistics stakeholders to mitigate the impact. It also called for continued policy support to help businesses manage cost pressures and maintain competitiveness in global markets.
While the situation remains fluid, India Inc expressed confidence that timely interventions and diversified trade strategies would help cushion the impact of the conflict on the country’s export sector.