India's Gulf Conflict Export Measures
Analysis based on 6 articles · First reported Apr 02, 2026 · Last updated Apr 02, 2026
The Gulf conflict is causing significant disruptions to India's trade, particularly affecting exports of gems, jewellery, rice, and pharmaceuticals. Increased freight costs, vessel rerouting, and payment channel stress are leading to higher operational expenses and potential revenue losses for Indian exporters, impacting their profitability and competitiveness. The measures taken by the India — Ministry of Trade and Industry aim to mitigate these negative effects, but the ongoing conflict poses a risk to India's overall trade balance and economic growth.
The ongoing conflict in the Gulf region is causing significant trade disruptions for India, a key market for its exports. Sectors such as gems and jewellery, rice, pharmaceuticals, petroleum products, chemicals, and engineering goods are particularly affected. Challenges include increased air and sea freight costs due to vessel rerouting, imposition of war risk surcharges by shipping lines, and disruptions in payment channels and credit cycles. Supply chains for critical inputs like LPG, PNG, and aluminium are also under stress, impacting manufacturing units. In response, the India — Ministry of Trade and Industry has rolled out several measures, including engaging with insurers and banks on war risk insurance and trade finance issues. An inter-ministerial group was established on March 2, which has held 20 meetings to assess and coordinate the trade impact, with a dedicated sub-group focusing on facilitating perishable cargo movement from India to the affected Gulf Cooperation Council region.
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