With tensions escalating in West Asia after US and Israeli strikes on Iran and retaliatory attacks by Tehran, the Commerce Ministry has convened a meeting on Monday with exporters, shipping lines and freight forwarders to assess the potential impact on India’s trade flows, PTI reported citing officials.
The US and Israel jointly launched military strikes on Iran on Saturday, prompting Iran to fire drones and missiles at Israel, US military installations in the Gulf and the global business hub of Dubai.
An official said the ministry has called the meeting in hybrid mode to evaluate the evolving situation and its implications for shipments, freight rates and logistics corridors critical to Indian exports.
Exporters have raised concerns that the conflict could disrupt trade routes through the Strait of Hormuz and the Bab el-Mandeb Strait, both key maritime passages connecting India to the Gulf, North America and Europe.
Federation of Indian Export Organisations (FIEO) President SC Ralhan said the hostilities have already started affecting established global logistics networks.
“Air routes are being altered, and maritime trade through the Red Sea and key Gulf straits faces heightened uncertainty. If diversions become prolonged, shipments may increasingly have to reroute via the Cape of Good Hope, adding an estimated 15–20 days to transit time for Europe and the United States,” Ralhan said earlier.
Exporters warned that prolonged disruption could push up freight rates and marine insurance premiums, adding to trade costs. Industry representatives said it may take a few days to get clarity on shipping capacity, alternative routes and revised insurance and freight charges.
West Asia hosts major maritime corridors through which a large portion of India’s exports to its key markets pass. India’s exports to the US stood at USD 86.5 billion, USD 98.4 billion to Europe and USD 58.8 billion to West Asia. Together, these regions account for nearly 56 per cent of India’s merchandise exports.
During the 2023–2025 Israel-Hamas conflict, freight rates had surged sharply as shipping lines avoided the Red Sea route and diverted vessels via the Cape of Good Hope, increasing transit time between India and Western markets by 15–20 days.
Industry players said that unlike the earlier episode, the current situation appears broader in scope and could pose deeper risks if tensions persist.
Freight rates are typically revised at the start of each month by major shipping lines, and fresh rates are expected to be published on Monday. At the beginning of 2026, rates had been contracting, exporters said.
The outcome of Monday’s meeting is expected to determine whether additional policy support or trade facilitation measures may be required to cushion the impact on exporters.
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