Textile exporters in Gujarat are facing mounting pressure as freight rates surge sharply following the escalating conflict in West Asia, disrupting key maritime trade routes and increasing logistics costs.
Exporters, particularly from Surat—India’s largest hub for synthetic fabrics—said shipping costs to markets in the Gulf, Europe and North Africa have risen steeply as vessels avoid sensitive waters around the Strait of Hormuz, a crucial shipping corridor for global trade.
Industry representatives noted that freight charges on some routes have jumped significantly, forcing exporters to renegotiate contracts with overseas buyers or absorb part of the additional costs to maintain long-standing trade relationships. Several shipments have also been delayed as shipping lines divert vessels through longer routes to avoid conflict-affected areas.
Textile exporters said the impact is particularly severe because the sector operates on thin margins, making it highly sensitive to fluctuations in logistics costs. Rising insurance premiums and war-risk surcharges have further added to the burden.
Gujarat accounts for a substantial share of India’s textile exports, with Surat and Ahmedabad serving as key manufacturing and export hubs. Trade bodies warned that if the geopolitical tensions persist, prolonged disruptions to shipping routes could affect order fulfilment, increase working capital requirements, and weaken the competitiveness of Indian textile exporters in global markets.