Conflict in West Asia Poses Threat to India's Agri and Food Exports

India's agricultural exports, valued at USD 11.8 billion, are facing major threats due to heightened conflict in West Asia. This instability is causing disruptions in crucial shipping routes, increasing insurance premiums, and creating logistical challenges, according to the Global Trade Research Initiative (GTRI).

In 2025, exports of cereals, fruits, vegetables, and spices comprised 21.8% of India's total in this sector, largely due to the Gulf region's proximity and its substantial Indian expatriate population. Key exports such as rice, bananas, onions, and spices are particularly vulnerable, with rice alone constituting 36.7% of global exports to this region, critical for Indian states like Punjab and Haryana.

The ongoing conflict, alongside logistics and insurance uncertainties, is causing significant concern among exporters and could severely impact farmers and food processors in various Indian states, suggests GTRI Founder Ajay Srivastava. The reliance on West Asian markets, especially for major categories like rice, meat, and dairy, underscores the stakes for India's economy.