The government has introduced a series of measures to support exporters facing turmoil due to the ongoing Gulf conflict, with key sectors such as gems, jewellery, rice and medicines under pressure, PTI reported.At an inter-ministerial press conference, Director General of Foreign Trade Lav Aggarwal said the Commerce Ministry is working with insurance companies and banks to address growing concerns about war risk insurance and trade financing.
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India’s exports to the Gulf region – including the UAE, Saudi Arabia, Oman, Bahrain, Qatar and Kuwait – are estimated to be worth $57 billion in 2024-25, while bilateral trade totaled $178 billion during the period.Agarwal said exporters are facing logistical and financial challenges, with rising shipping costs, ship rerouting and disruption of payment channels affecting shipments. Sectors such as petroleum products, chemicals, engineering goods, rice, pharmaceuticals, gems and jewellery, were among the worst affected.He added that the region remains the largest agricultural export destination for basmati rice, marine products and fresh produce, but high air and sea freight costs are affecting shipments of perishable goods.
For the gems and jewelery sector, the GCC represents a major export market and sourcing centre. Gold jewelery exports are under pressure, while sourcing of gold bullion and rough diamonds has also been disrupted.Engineering exports are facing additional pressure due to surcharges imposed by shipping lines due to war risks, while LPG and Papua New Guinea supply disruptions are affecting foundry, blacksmithing and manufacturing units.
Constraints on aluminum supplies and restrictions on access to major Gulf ports are also adding to the pressure.Pharmaceutical supply chains are under pressure due to disruptions in vital inputs, while MSMEs suffer from shortages of raw materials.To manage the situation, the Ministry of Commerce formed an inter-ministerial group on March 2 to assess and coordinate the trade impact of the conflict in West Asia. The group has held 20 meetings so far, with a dedicated sub-group focusing on facilitating the movement of perishable goods.“The group continues to monitor the evolving situation and ensure effective convergence between ministries to support trade,” Aggarwal said.