DGFT Unveils Relief Measures for Exporters Affected by Gulf Conflict

Government Rolls Out Measures to Cushion Exporters from Gulf Conflict

The Indian government has taken a series of measures to mitigate the impact of the conflict in the Gulf region on exporters. A key market for India's exports, the region includes countries such as the UAE, Saudi Arabia, Oman, Bahrain, Qatar, and Kuwait, with which India had a bilateral trade of USD 178 billion in 2024-25.

The conflict poses significant challenges for exporters, particularly in sectors such as petroleum products, chemicals and plastics, engineering goods, rice, pharma, and gems and jewellery. The six countries in the region are a major destination for India's exports, with a total value of USD 57 billion in 2024-25. The region is also a significant market for Indian agriculture exports, including Basmati, Marine Products, and fresh produce.

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The conflict has disrupted payment channels to key markets, impacting credit cycles for food and agri-sector goods. For gems and jewellery, the Gulf Cooperation Council (GCC) is both a major export market and sourcing hub. Gold jewellery exports are under stress, while sourcing of gold bars and rough diamond imports from the GCC is also facing disruptions.

To address these challenges, the commerce ministry has set up an inter-ministerial group on March 2 to assess and coordinate the trade impact of the ongoing West Asia conflict. The group has held 20 meetings and has constituted a focused sub-group specifically for facilitating perishable cargo movement from India to the affected region.

The group continues to monitor the evolving situation and ensure effective inter-ministerial convergence to support trade. The ministry is also engaged with insurers and banks on war risk insurance escalation and trade finance issues, and regularly holds meetings with exporters to understand evolving stress patterns and devise mechanisms to resolve the issues.

Key Statistics:

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• India's bilateral trade with the Gulf region: USD 178 billion in 2024-25
• Value of India's exports to the Gulf region: USD 56.87 billion in 2024-25
• Value of India's imports from the Gulf region: USD 121.67 billion in 2024-25