To provide a cushion to exporters facing fallout of the West Asia conflict, the government is looking at developing schemes that would mitigate the risks that might face, commerce and industry minister Piyush Goyal said Tuesday.
“We are looking to develop some new schemes like insurance support… We are consulting the Export Credit Guarantee Corporation (ECGC) and other departments on that,” Goyal told reporters after the inauguration of international food and hospitality fair AAHAR 2026.
Within the broader umbrella of the Export Promotion Mission (EPM) that has eight key components also some steps may be announced. The conflict that started on February 28 has led to shutting off of the key market of West Asia for India’s exports. In 2024-25 India’s exports to the region were in the vicinity of $ 58.8 billion.
Immediate impact of war
The immediate impact of war has been that the products that were dispatched to the countries of the region were stranded at sea. After a few days at sea some of the containers were discharged by the shipping lines at nearby ports. While perishables cannot be retrieved, the government has eased rules for re-entry of goods that had left the shores into India.
Because of the war, the shipping lines have started seeking a surcharge and started imposing other ancillary charges. For transporting goods to Europe and US the ships are using the Cape of Good Hope on the tip of Africa.
After complaints by those involved in Export-Import, The Director General of Shipping has directed logistics ecosystem, all shipping lines, carriers and their agents to refrain from predatory, non-transparent and opportunistic pricing practices, including levy of exorbitant charges thereby taking undue advantage of prevailing geo-political issue.
They have also been advised to adhere to fair trade practices and avoid the levy of charges that may give rise to disputes within the EXIM trade and ensure that all applicable charges are communicated clearly and upfront to exporters, importers and other stakeholders.
While inaugurating AAHAR, Goyal said India’s exports of food and agricultural products—including farm produce and fisheries—have reached nearly Rs 5 lakh crore (over $ 55 billion) annually, making the country the seventh largest exporter of agricultural produce in the world.
“These achievements should inspire India to aspire for the top position globally in agricultural and processed food exports.”