Middle East Disruption: Government to Utilize Comprehensive Policy Strategies to Support Exporters
Commerce and Industry Minister Piyush Goyal announced on Friday that the Indian government is committed to supporting exporters facing challenges due to the ongoing conflict in West Asia. Speaking at the IIFT vice chancellors’ conclave in New Delhi, Goyal revealed that an inter-ministerial group has been established to monitor the situation and address exporters’ concerns. He emphasized the government’s readiness to utilize all available policy tools to assist exporters amid rising freight costs and disrupted shipping routes.
Government’s Commitment to Exporters
Minister Goyal reassured exporters that the government would employ every possible measure to support them during these turbulent times. He stated, “We will be formalising some ways to give comfort to our exporters.” This response comes as exporters have voiced their need for government intervention due to the escalating conflict involving the US, Israel, and Iran, which has severely impacted shipping routes and increased freight costs. Reports indicate that some shipping lines are imposing war-risk surcharges of up to $4,000 per 40-foot container, leading to significant challenges in moving consignments to West Asia.
Impact of the Conflict on Trade
West Asia is a vital trade partner for India, with imports from the region reaching $98.7 billion in 2025. The region is a crucial supplier of energy, fertilizers, and industrial raw materials. In the fiscal year 2024-25, India’s exports to West Asian economies amounted to $58.8 billion. Goyal highlighted that the commerce ministry is working closely with the ministry of shipping and shipping companies to tackle the difficulties exporters are facing. He expressed hope for a resolution to the ongoing issues, emphasizing the importance of maintaining trade relations with this key region.
Addressing Rising Freight Costs
As freight costs continue to rise, Goyal mentioned that the government is collaborating with stakeholders to find ways to alleviate the financial burden on exporters. The inter-ministerial group is in constant communication with exporters to gather feedback and ensure that their needs are addressed. Goyal assured that the government is committed to honoring all international commitments made by Indian industries, reinforcing India’s reputation as a trusted partner in global trade. He noted that even during the COVID-19 pandemic, India successfully met its global obligations.
Exporters’ Requests for Support
In light of the current challenges, exporters have requested higher rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and urged the Export Credit Guarantee Corporation of India (ECGC) to refrain from increasing insurance premiums. They are also seeking ad hoc working-capital limits and credit extensions similar to those provided during the pandemic. Industry groups report that exporters are facing container shortages, vessel call cancellations to the Middle East, and soaring logistics costs. They have called for urgent government support to mitigate the impact of shipping disruptions caused by the Iran crisis and instability in key maritime routes. Additionally, exporters have requested waivers on port-related charges and facilitation for cargo in transit to be redirected or returned, with assistance from customs authorities and the Reserve Bank of India.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
