India Shields Exporters Amid Gulf Conflict Challenges

The Indian government has implemented comprehensive measures to shield exporters from the ramifications of the conflict in the Gulf region, which is a crucial market for Indian exports including gems, jewellery, rice, and pharmaceuticals. These exports were valued at approximately USD 57 billion in the 2024-25 period, according to a senior official on Thursday.

During an inter-ministerial briefing on the impact of developments in West Asia, Director General of Foreign Trade Lav Aggarwal revealed that the commerce ministry is collaborating with insurers and banks to address issues like war risk insurance and trade finance. He noted that the ministry is in regular talks with exporters to identify emerging stress patterns and develop solutions.

The conflict presents obstacles for exporters dealing with the Gulf, where India had USD 178 billion in bilateral trade in 2024-25. Sectors under stress include petroleum products, chemicals, engineering goods, and others. The ministry has convened an inter-ministerial group to assess trade impacts and coordinate necessary actions, with special attention on the movement of perishable cargo.