Despite rising geopolitical tensions in the Middle East, including the Iran-Israel conflict, India’s export sector remains resilient and adaptive, according to the Federation of Indian Export Organisations (FIEO). While trade with Iran and Israel is notable, it forms a relatively small part of India’s overall export-import portfolio.
“We do anticipate some short-term impact on demand and logistics—particularly in the Gulf region, which serves as a crucial hub for Indian exports. Increased shipping costs, longer transit times, and rising marine insurance premiums may add pressure, especially in price-sensitive sectors,” S C Ralhan, president of FIEO. “However, Indian exporters have historically responded with agility—re-routing shipments, exploring new markets, and managing financial risks effectively. The strong presence of MSMEs and large exporters, along with government support mechanisms, is expected to buffer near-term shocks.”
The FIEO is monitoring crude oil price volatility, given its implications for inflation and freight costs. Nonetheless, India’s diversified energy strategy and the Reserve Bank’s proactive approach are helping to maintain macroeconomic stability, Ralhan said in a press release.
FIEO views the current situation as an opportunity to strengthen regional partnerships, explore alternate trade routes, and reinforce India’s global trade reliability.
“The FIEO is committed to supporting exporters with timely guidance, market intelligence, and policy advocacy to ensure continued momentum in our global trade journey,” the release added.