Kamal Ghorui
The government has introduced a series of measures to support exporters facing disruptions from the ongoing Gulf conflict, with key sectors such as gems and jewellery, rice and pharmaceuticals under pressure, PTI reported.At an inter-ministerial briefing, Director General of Foreign Trade Lav Aggarwal said the commerce ministry is working with insurers and banks to address rising war-risk insurance and trade finance concerns.India’s exports to the Gulf region — including the UAE, Saudi Arabia, Oman, Bahrain, Qatar and Kuwait — were valued at about $57 billion in 2024-25, while total bilateral trade stood at $178 billion during the period.Aggarwal said exporters are facing logistical and financial challenges, with higher freight costs, vessel rerouting and disrupted payment channels impacting shipments. Sectors such as petroleum products, chemicals, engineering goods, rice, pharma and gems and jewellery are among the worst hit.He added that the region remains the largest agri-export destination for basmati rice, marine products and fresh produce, but rising air and sea freight costs are affecting shipments of perishable goods.For the gems and jewellery sector, the Gulf Cooperation Council serves both as a key export market and sourcing hub. Gold jewellery exports are under stress, while sourcing of gold bars and rough diamonds has also been disrupted.Engineering exports are facing additional pressure due to war-risk surcharges imposed by shipping lines, while LPG and PNG supply disruptions are affecting foundry, forging and machining units. Aluminium supply constraints and restricted access at key Gulf ports are also adding to the strain.Pharmaceutical supply chains are under stress due to disruptions in critical inputs, while MSMEs are grappling with raw material shortages.To manage the situation, the commerce ministry has set up an inter-ministerial group on March 2 to assess and coordinate the trade impact of the West Asia conflict. The group has held 20 meetings so far, with a dedicated sub-group focusing on facilitating perishable cargo movement.“The group continues to monitor the evolving situation and ensure effective inter-ministerial convergence to support trade,” Aggarwal said.
