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Geopolitical Tensions In Middle East Prompt Indian Exporters To Explore New Markets

India’s export sector remains resilient amid Middle East tensions, with exporters adapting to logistical challenges. Government support, diversified energy routes, and market diversification help sustain trade momentum despite short-term disruptions.

Published By: Aishwarya Samant
Last Updated: June 23, 2025 15:25:48 IST

India’s export sector remains “resilient and adaptive” amid geopolitical tensions in the Middle East, including the ongoing Iran-Israel conflict, which pose certain challenges to global trade dynamics, said SC Ralhan, President of the Federation of Indian Export Organisations (FIEO).

“Our trade with both Iran and Israel, while important, constitutes a small share of our overall export-import basket. The government and industry are jointly monitoring developments to ensure minimal disruption,” Ralhan added.

FIEO anticipates 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,” he noted.

However, Indian exporters have repeatedly demonstrated agility in rerouting shipments, diversifying markets, and managing financial exposures. “The robust MSME and large-scale exporters, coupled with strong government support mechanisms, will help cushion any near-term shocks,” Ralhan emphasized.

Crude oil price volatility is being closely watched, as it influences inflation and logistics costs. Nonetheless, India’s diversified energy procurement strategy and the Reserve Bank’s proactive stance help maintain liquidity and macroeconomic stability.

Over the years, India has diversified its energy supplies, and a significant volume no longer passes through the Strait of Hormuz. Oil Marketing Companies hold supplies for several weeks and continue receiving energy supplies via multiple routes. Petroleum Minister Hardeep Puri pledged that his ministry will take all necessary steps to ensure the stability of fuel supplies to citizens.

“Overall, while there are temporary headwinds, we see this as an opportunity for Indian exporters to explore alternate routes, strengthen regional partnerships, and consolidate India’s role as a reliable trade partner in uncertain times,” concluded the FIEO President.

The FIEO is committed to supporting exporters with timely guidance, market intelligence, and policy advocacy to sustain momentum in India’s global trade journey.

(From ANI)

Also Read: India’s Office Leasing Hits New Highs Despite Global Uncertainty: CBRE Report

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