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West Asia Tensions Disrupt India Trade Routes

India is closely tracking the impact of West Asia tensions on shipping and logistics, amid rising trade disruptions. Exporters report higher freight rates, war-risk surcharges, container shortages, delays and port congestion. The region remains critical, accounting for over US$ 10.6 billion, or 20.5%, of India’s agricultural exports. At the same time, the government highlighted strong domestic manufacturing support under PLI schemes, with Rs 2.16 lakh crore in investments and over Rs 15,500 crore in incentives disbursed across sectors. While trade risks are rising, India continues to balance external shocks with internal industrial growth and export resilience strategies.

The region remains critical, accounting for over US$ 10.6 billion, or 20.5%, of India’s agricultural exports. At the same time, the government highlighted strong domestic manufacturing support under PLI schemes, with Rs 2.16 lakh crore in investments and over Rs 15,500 crore in incentives disbursed across sectors.

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