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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
RAJYA SABHA
UNSTARRED QUESTION NO. 3231
ANSWERED ON 20/03/2026
IMPACT OF WEST ASIA CONFLICT ON INDIA'S TRADE AND SUPPLY CHAIN
3231. DR. MEDHA VISHRAM KULKARNI
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
(a) whether Government has assessed likely disruptions to India’s export-import chains,
particularly of rice, tea and fruits to West Asia and Africa, due to the ongoing regional
conflict;
(b) if so, whether India’s bilateral trade with countries in the region is at risk and the steps
taken to mitigate losses for exporters;
(c) the impact on shipping routes, freight costs and supply-chain logistics due to heightened
geopolitical risks; and
(d) the initiatives taken to secure alternative routes or markets?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) to (d) The Government has been closely monitoring the evolving geopolitical situation in
West Asia and the Gulf region, including its impact on India's external trade, shipping routes
and logistics chains.
To address the situation, the Department of Commerce undertook stakeholder consultations to
review the logistics situation in the country on March 02, 2026. Thereafter, based on the
assessment of the situation arising in the country, the Department of Commerce has
operationalized the Inter-Ministerial Group (IMG) on Supply Chain Resilience on March
02, 2026 as the central coordination platform with participation of concerned Ministries and
agencies, including Ministry of Ports, Shipping & Waterways, Ministry of Petroleum &
Natural Gas, Department of Financial Services, Department for Promotion of Industry &
Internal Trade (DPIIT), Central Board of Indirect Taxes & Customs (CBIC), Ministry of
External Affairs, Directorate General of Shipping and Reserve Bank of India (RBI). The IMG
has held review meetings on a regular basis, enabled a dedicated communication channel for
exporters, and compiled daily situation and action reports for coordinated response.
The Government's response has focused on coordinated trade facilitation, logistics support,
customs simplification, maritime monitoring, and engagement with concerned stakeholders to
reduce the impact of the disruption on India's exports, including exports to the wider Gulf
region. The steps taken by the Government inter alia include the following:
DGFT has notified on 19th March, 2026 a time-limited Support for Indian Exporters,
Resilience & Logistics Intervention for Export Facilitation (RELIEF) intervention under
the Export Promotion Mission, to be implemented through the Export Credit Guarantee
Corporation of India (ECGC) to address elevated export risks arising from geopolitical
disruptions in the Gulf and West Asia maritime corridor.
1DGFT has issued Public Notice No. 51/2025-26 dated March 06, 2026 extending the
Export Obligation / Block-wise Export Obligation fulfilment period up to August 31,
2026 for specified Advance Authorisations and EPCG Authorisations where the period
was expiring between March 01, 2026 and July 31, 2026, without payment of
composition fee and without applying for the same to Regional Authorities of DGFT.
CBIC has directed all Customs Zones on March 05, 2026 and March 17, 2026 to
convene special Customs Clearance Facilitation Committee (CCFC) meetings with field
formations, CFS operators and trade stakeholders to address operational concerns arising
from the disruption.
CBIC has issued Circular No. 09/2026-Customs dated March 08, 2026 prescribing a
simplified procedure for handling export cargo returning to Indian ports due to the
closure of the Strait of Hormuz, including facilitation for berthing, offloading, Shipping
Bill cancellation in applicable cases, and Back-to-Town permission on request.
CBIC has issued Circular No. 12/2026-Customs dated March 17, 2026 prescribing
simplified procedure for international transshipment and handling of diverted cargo,
including permission for temporary storage and re-export under customs supervision to
maintain continuity of trade flows.
Customs field formations, including Nhava Sheva, Mundra and Kandla Custom Houses,
have issued facilitation measures for Back-to-Town (BTT) movement of stranded export
cargo and waived physical examination in specified cases and BTT-related
fees/penalties to expedite evacuation of cargo.
The Ministry of Ports, Shipping & Waterways has issued a Standard Operating
Procedure (SOP) on March 06, 2026 for major ports, providing for stakeholder meetings,
24x7 nodal officers, temporary storage of Middle East-bound cargo, additional storage
areas, facilitation of BTT movement, priority handling of perishable cargo, priority
handling of returning export cargo, and case-by-case waiver or reduction of certain port
charges.
The Directorate General of Shipping (DGS) has remained in regular contact with Indian
vessels and Indian seafarers and has convened consultations with shipping lines on
March 06, 2026 and March 09, 2026, assessed operational challenges arising from war-
risk and insurance constraints, and monitored vessel movements in the Persian Gulf
region. Furthermore, DGS has issued an advisory Circular No. 14 of 2026 dated March
09, 2026 to shipping lines, carriers and their agents to ensure transparency in pricing and
to refrain from predatory, non-transparent or opportunistic charges, in the context of
prevailing geopolitical tensions. Shipping service providers have also been advised to
clearly communicate all applicable charges upfront and adhere to fair trade practices,
with the objective of reducing undue cost burden on exporters and improving
predictability in logistics operations.
The Ministry of External Affairs has, through Indian Missions in the region,
issued advisories and explored alternative sea passages to mitigate disruptions.
The Ministry of Petroleum & Natural Gas has activated a 24x7 emergency cell for vessel
tracking and reviewed developments relating to crude oil, LNG and LPG shipments,
including alternative routes and supply options.
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