How the Indian Government is Supporting Exporters Amid West Asia Crisis
Government's Commitment to Exporters
New Delhi: In light of the ongoing crisis in West Asia, Commerce and Industry Minister Piyush Goyal announced that the government is prepared to utilize all available policy measures to assist domestic exporters.
Goyal mentioned the establishment of an inter-ministerial group that will monitor the situation on a daily basis.
"We are committed to employing every policy tool and export promotion initiative to support our exporters. We will be formalizing strategies to provide reassurance to them," Goyal stated during a press briefing in New Delhi at the IIFT vice chancellors' conclave.
This response comes as exporters have called for government intervention to navigate the challenges posed by disruptions in goods movement due to the ongoing conflict involving the US, Israel, and Iran.
Exporters are currently facing significant challenges with shipping to West Asia, as some shipping lines are imposing war-risk surcharges that can reach up to USD 4,000 for a 40 ft container, with several vessels stranded in international waters.
These circumstances have led to a notable increase in freight rates and insurance costs.
West Asia is a vital trading partner for India, with imports from the region amounting to USD 98.7 billion in 2025, making it a key source for energy, fertilizers, and industrial raw materials. In the fiscal year 2024-25, exports to West Asian countries totaled USD 58.8 billion.
Goyal confirmed that the commerce ministry is actively engaging with the shipping ministry and shipping companies to address exporters' concerns. "I am optimistic that we will find a resolution to these issues," he added.
Regarding the rising freight costs, he mentioned that the ministry is collaborating with stakeholders to alleviate the financial burden on exporters.
"The inter-ministerial group is in constant communication with exporters, gathering feedback, and we are dedicated to supporting them in every possible way," he emphasized.
He reassured that India will uphold all commitments made by its industries to international buyers in both goods and services.
"This government stands firmly with our industry and will ensure that all international commitments are fulfilled, as this is what defines India," he remarked, recalling how India met its international obligations even during the COVID-19 pandemic, earning a reputation as a trusted partner.
Exporters are advocating for increased RoDTEP (Remission of Duties and Taxes on Exported Products) rates and are urging the Export Credit Guarantee Corporation of India (ECGC) to refrain from raising insurance premiums. They are also requesting temporary working capital limits and credit extensions similar to those provided during the pandemic.
Challenges such as container shortages, vessel call cancellations to the Middle East, and soaring logistics costs are affecting exporters.
They have urgently requested government assistance to mitigate the repercussions of shipping disruptions caused by the Iran crisis and instability in key maritime routes.
International freight rates have surged by approximately 15-20%, with war-risk surcharges and insurance premiums for shipments to the Gulf rising sharply. Additionally, bunker fuel costs have increased, with marine fuel oil prices climbing to around USD 580 per tonne from about USD 520, according to IREF.
Exporters are calling for the government to waive port-related fees, including storage and demurrage charges, in instances where cargo is delayed due to vessel cancellations or significant freight hikes beyond their control. They have also requested support for the return, redirection, or diversion of cargo in transit, with assistance from customs authorities and the Reserve Bank of India for documentation and payment adjustments.
Rice exporters have specifically requested an official advisory from the government to recognize the disruptions as a force majeure event, which they believe would help avoid contractual penalties.