Banking and Shipping Secretaries to Meet Stakeholders Today on Relief for Exporters Amid West Asia Crisis

India to Discuss Relief Measures for Exporters Amid Iran Conflict

Department of Financial Services Secretary M. Nagaraju and Shipping Secretary Vijay Kumar will meet with industry stakeholders on March 10 to discuss the impact of the ongoing Iran conflict on India's trade and shipping sectors.

Possible relief measures for exporters, including lower insurance costs, increased working capital, and expanded credit access, are expected to be explored during the meeting. The government will listen to suggestions and demands from industry stakeholders and assess the situation to consider providing relief.

The meeting comes a day after a high-level session hosted by the Federation of Indian Export Organisations (FIEO) with the Directorate General of Shipping, where exporters raised concerns over retrospective war-related surcharges, vessel rerouting, shipment delays, cargo diversion, and rising detention and demurrage charges.

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Indian exporters are already feeling the impact of the West Asia conflict, particularly in key markets and logistics chains. The Global Trade Research Initiative (GTRI) warned that India's agricultural and food exports worth around $11.8 billion to West Asia, including cereals, fruits, spices, dairy, and meat, are at risk due to disrupted shipping routes, rising insurance costs, and logistical uncertainty.

Industry groups have reported containers stranded abroad, surcharges pushing up freight costs several-fold, and delays affecting perishable consignments, prompting calls for government support on freight, insurance, and working capital.

The government has indicated broader support for exporters. On March 6, Commerce and Industry Minister Piyush Goyal stated that the government will use all available tools, including the Export Promotion Mission, to support exporters affected by the West Asia conflict and is working on relief measures.

The conflict, which began with US and Israeli strikes on Iran on February 28, has now entered its second week, raising fears it could spread further across the region. However, US President Donald Trump on March 9 stated that the war was "ahead of schedule" and could end "very soon." This led to oil prices falling sharply to around $91.7 per barrel on March 10.

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