Commenting on the impact of trade due to ongoing conflict in West Asia, government sources have told CNBC-TV18 that efforts are underway to facilitate exporters in every possible way even as the government works to formulate more schemes to help exporters, many of whom are facing higher insurance costs and freight charges due to the ongoing conflict.
Sources added that once the stocks of imported goods deplete in West Asia, fresh demand is likely to generate for India’s exports.
Six member countries of the Gulf Cooperation Council (GCC), i.e. Saudi Arabia, UAE, Oman, Qatar, Kuwait, and Bahrain, are among the countries impacted due to the ongoing conflict.
GCC is India’s largest trading partner bloc with bilateral trade reaching $178.56 billion (Exports: $56.87 billion; Imports: $121.68 billion) in FY 2024-25, accounting for 15.42% of India’s global trade. In the last five years, India’s trade with the GCC has expanded steadily, registering an annual average growth rate of 15.3%.
Key exports from India to GCC include engineering goods, rice, textiles, machinery, gems and jewellery. Key sectors of imports from GCC primarily comprise crude oil, LNG, petrochemicals, and precious metals such as gold. Collectively, the GCC countries represent a market of 61.5 million people (2024) and $ 2.3 trillion in terms of GDP at current prices, ranking 9th globally in this category. The GCC region is also a significant source of FDI for India, with cumulative investments exceeding $31.14 billion as on September 2025.
Among other war-impacted countries, Iran had a bilateral trade of $1.68 billion in FY2024-25 (April 2024 to March 2025). Of this, India exported goods worth $1.24 billion, while imports clocked $440 million. India is one of five largest trading partners of Iran, with exports of basmati rice, tea, sugar, pharmaceuticals, synthetic fibres, electrical machinery and artificial jewellery and imports of dry fruits, inorganic and organic chemicals, and glassware.
On 5th March, CNBC-TV18 had reported claims by exporters alleging levy of contingency charges even on shipments which reached West Asia before the conflict began.
Director General of the Federation of Indian Export Organisations (FIEO), Ajay Sahai had said that shipping lines were seeking contingency surcharges up to $4,000 on 40-feet containers carrying perishable goods, with many lines refusing to release even those consignments which had reached ports before the conflict began.
Stating that raised charges can be imposed on goods which are yet to be loaded on ships from India, he had pointed out that Indian exporters were facing challenges due to extra costs in form of surcharges, with air freight charges from Kolkata to West Asia having risen from ₹175 per kg to ₹ 425 per kg. Exporters had raised the issue with the Commerce Ministry due to difficulties in absorbing costs.
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