New Delhi, Mar 24 (KNN) The Government is closely monitoring the evolving geopolitical situation in West Asia and the Gulf region and its impact on India’s external trade, logistics, and shipping operations, Minister of State for Commerce and Industry Jitin Prasada informed the Lok Sabha.
Disruptions Impact Trade, Logistics And Shipping
In a written reply, the Minister said disruptions in maritime and air cargo routes through the Middle East have led to increased freight costs due to rerouting and war-risk surcharges, cargo accumulation at ports and logistics hubs, and financial stress caused by longer transit cycles.
These challenges have affected multiple sectors, including agriculture, textiles, and engineering exports.
Inter-Ministerial Coordination And Stakeholder Engagement
To address the situation, the Department of Commerce held stakeholder consultations on March 2, 2026, and operationalised an Inter-Ministerial Group (IMG) on Supply Chain Resilience as a central coordination platform.
The IMG includes participation from key ministries and agencies such as the Ministry of Ports, Shipping and Waterways, Ministry of Petroleum and Natural Gas, Department for Promotion of Industry and Internal Trade, Central Board of Indirect Taxes and Customs, Ministry of External Affairs, Directorate General of Shipping, and the Reserve Bank of India.
The group has been conducting regular reviews, maintaining communication with exporters, and compiling daily reports to enable coordinated response.
Relief Measures And Trade Facilitation Steps
The government’s response has focused on trade facilitation, logistics support, customs simplification, and maritime monitoring.
Key measures include the launch of a time-bound RELIEF initiative by the Directorate General of Foreign Trade to support exporters facing elevated risks due to disruptions in the Gulf and West Asia maritime corridor, implemented through the Export Credit Guarantee Corporation of India.
Further, export obligation deadlines under Advance Authorisation and EPCG schemes have been extended till August 31, 2026, without additional fees.
The Central Board of Indirect Taxes and Customs has also issued multiple circulars to simplify procedures for handling returning export cargo, transshipment, and diverted shipments, including provisions for temporary storage and re-export under customs supervision.
Steps To Ensure Continuity Of Trade Operations
Customs authorities at key ports such as Nhava Sheva, Mundra, and Kandla have introduced facilitation measures, including waivers on certain fees and expedited clearance processes.
The Ministry of Ports, Shipping and Waterways has issued a standard operating procedure to ensure priority handling of perishable and returning cargo, 24×7 nodal support, and additional storage capacity.
The Directorate General of Shipping has been monitoring vessel movements and engaging with shipping lines to address operational challenges, including war-risk insurance, while also issuing advisories to ensure transparent pricing.
Meanwhile, the Ministry of External Affairs is coordinating through Indian missions to explore alternative sea routes, while the Ministry of Petroleum and Natural Gas has activated a 24×7 emergency cell to track shipments of crude oil, LNG, and LPG and assess alternative supply options.
The government said these coordinated measures are aimed at minimising disruptions and ensuring continuity in India’s export operations amid the ongoing geopolitical uncertainties.
(KNN Bureau)
