The Federation of Indian Export Organisations (FIEO) has cautioned that ongoing tensions in West Asia could result in a significant decline in India’s export earnings, potentially impacting trade by $7–8 billion.
FIEO highlighted that key sectors, including electronics, engineering goods, and petroleum products, are particularly vulnerable due to heavy reliance on Gulf markets. The body urged exporters to diversify markets and explore alternative trade routes to mitigate potential losses.
Analysts noted that a prolonged conflict could disrupt shipping schedules, increase insurance premiums, and raise logistics costs, further straining India’s export growth in the current fiscal year.
FIEO also called on the government to proactively engage with regional partners to ensure smooth trade operations and safeguard economic interests.