Indian exporters and logistics providers are taking steps to minimise disruptions caused by the ongoing geopolitical tensions in West Asia, closely monitoring shipping carriers, planning shipments in advance and exploring alternative maritime routes to ensure cargo movement continues.
Industry representatives said exporters are also adjusting inventory levels, renegotiating contracts and revising shipment schedules to build greater flexibility into supply chains as uncertainty persists.
They added that a range of support measures could help mitigate the impact of the crisis. These include the issuance of regular advisories, engagement with shipping lines to manage surcharges, ensuring vessel and container availability, allowing flexibility in compliance timelines, and maintaining continuous dialogue between industry bodies and government authorities.
S. C. Ralhan, president of the Federation of Indian Export Organisations, said exporters were attempting to manage shipments despite the worsening situation. He stated that conditions had not improved but the exporting community was making efforts to maintain operations, while emphasising that shipping lines should avoid taking undue advantage of the crisis.
Ongoing geopolitical tensions in West Asia, particularly around the strategic Strait of Hormuz, are creating uncertainty for India’s export sector by affecting shipping schedules, freight costs, insurance premiums and broader supply chains. Exporters are closely monitoring developments as additional surcharges and longer transit times begin to affect cargo movement.
An apparel industry expert noted that export orders to the Middle East could decline over the coming months if the conflict persists, as weaker consumption in the region may dampen demand.
West Asia is a significant market for India’s garment sector. Around 11.8% of India’s apparel exports are shipped to countries in the region currently affected by the conflict. Exports of ready-made garments to eight countries — the United Arab Emirates, Saudi Arabia, Israel, Kuwait, Oman, Qatar, Iraq, Bahrain and Iran — stood at US $1.9 billion in the 2024–25 financial year, compared with US $1.82 billion in 2023–24. Total ready-made garment exports from India reached US $15.97 billion during the same period, up from US $14.51 billion a year earlier.
Industry experts warned that textile manufacturers dependent on imported inputs such as synthetic fabrics, trimmings and embellishments could face shortages or rising costs if disruptions persist. They noted that higher logistics charges would increase the cost of raw materials and ultimately raise the final cost of textile and apparel products.
Ramesh Kumar Juneja, chairman of the Council for Leather Exports, stated that shipments to the Persian Gulf had come to a complete halt. He added that insurance premiums had risen sharply, increasing by about US $1,200 for a 20-foot container and around US $2,400 for a 40-foot container.
In response to the crisis, several shipping lines are diverting vessels around the Cape of Good Hope in southern Africa to avoid the Strait of Hormuz and the Red Sea. The longer route adds roughly 3,500 nautical miles to voyages, extending transit times by around 10 to 15 days and significantly increasing fuel and insurance costs.
Industry executives cautioned that these extended voyages could also lead to a shortage of vessels in the coming weeks, as ships remain tied up on longer routes. Reduced vessel and container availability could push freight rates higher not only in the affected region but also across global shipping networks, potentially increasing the cost of delivering export orders to markets in the United States and Europe.
