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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
RAJYA SABHA
UNSTARRED QUESTION NO. 3242
ANSWERED ON 20/03/2026
SAFEGUARDING INDIAN EXPORTS AND MANAGING IMPORT COSTS
3242. SHRI RAVI CHANDRA VADDIRAJU
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
(a) the extent of the impact on Indian exports to the Gulf region, particularly in the gems,
jewellery, electronics sectors, due to the closure of airspace and shipping disruptions
since March 2026;
(b) whether Government is considering a "War-Risk Freight Subsidy" for Indian exporters
to offset the 50 per cent spike in shipping insurance and container costs;
(c) the measures taken to diversify the sourcing of raw materials for the diamond and
semiconductor industries to reduce dependency on conflict-prone hubs like Dubai and
Tel Aviv; and
(d) status of the "Emergency Trade Monitoring Cell" in tracking the real-time fallout of the
Iran-Israel conflict on India’s trade deficit?
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,
1Resilience & 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.
DGFT 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 Authorizations and EPCG Authorizations 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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