India’s $200 bn trade under threat, situation ‘serious’ as West Asia conflict continues

New Delhi: India’s trade worth nearly $200 billion with West Asian countries is facing a serious threat as the ongoing regional conflict continues to disrupt shipping routes, energy supplies and export logistics, according to government officials and trade experts.

The conflict, which escalated in late February with military strikes and retaliatory attacks in the region, has severely affected maritime traffic through the Strait of Hormuz, one of the world’s most critical energy and trade routes. Shipping disruptions and security risks have led to delays, higher freight costs and rising insurance premiums for exporters.

West Asia is among India’s most important trading partners, accounting for tens of billions of dollars in exports annually, including petroleum products, food items, textiles and engineering goods. Officials say the current situation is “serious” because prolonged instability could disrupt supply chains and reduce demand in Gulf markets.

Industry groups have already begun reporting difficulties. Apparel exporters say shipping costs have risen sharply due to longer alternative routes and war-related surcharges, increasing expenses by ₹12–₹55 per garment. Meat exporters and other sectors are also facing delays and higher freight charges as shipping companies avoid risky zones in the region.

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The crisis also threatens India’s energy security and overall trade stability since the Gulf region handles a significant portion of the country’s oil imports and commercial shipments. Disruptions in the Strait of Hormuz could affect global oil supplies and push prices higher.

The Commerce Ministry is closely monitoring developments and is preparing support measures for exporters, including possible insurance and logistics assistance, to mitigate the impact of the ongoing conflict on Indian trade.

If tensions persist, experts warn that India’s exports, supply chains and economic growth could face significant pressure in the coming months.

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