Commerce and industry minister Piyush Goyal on Friday said that the government will deploy all available policy tools and support mechanisms to help Indian exporters cope with disruptions arising from the ongoing West Asia conflict.
Speaking to reporters on the sidelines of the IIFT vice chancellors’ conclave in New Delhi, Goyal said an inter-ministerial group has been set up to monitor the situation on a daily basis and address exporters’ concerns, PTI reported.
"And the government will use every policy tool and the export promotion mission to support our exporters...We will be formalising some ways to give comfort to our exporters," Goyal said.
The minister was responding to demands from exporters seeking government intervention as the conflict involving the US, Israel and Iran has disrupted shipping routes and pushed up freight costs.
Exporters have reported problems in moving consignments to West Asia, with some shipping lines demanding war-risk surcharges of up to $4,000 per 40-foot container, while several vessels remain stranded in international waters. These developments have significantly increased freight rates and insurance premiums.
West Asia is a key trade partner for India. In 2025, India imported $98.7 billion worth of goods from the region, which remains a crucial supplier of energy, fertilisers and industrial raw materials. India’s exports to West Asian economies stood at $58.8 billion in 2024–25.
Goyal said the commerce ministry is coordinating closely with the ministry of shipping and shipping companies to address the challenges faced by exporters.
"And I do hope we will find a resolution to this issue also," he said.
On rising freight costs, the minister said the government is working with stakeholders to explore ways to reduce the burden on exporters.
"Every day the inter-ministerial group talks to the exporters...They take feedback, and we will not be found wanting in supporting our exporters in any way," he said.
He also assured that India will honour all commitments made by domestic industries to overseas buyers.
"But I can assure you, this government stands with our industry and will continue to ensure that all our international commitments are met. Because that is what defines India," he said, adding that even during the Covid pandemic, India met all its global commitments, "which earned us the acronym of a trusted partner".
Exporters have sought higher RoDTEP (Remission of Duties and Taxes on Exported Products) rates and have urged the Export Credit Guarantee Corporation of India (ECGC) not to increase insurance premiums. They have also requested ad hoc working-capital limits and credit extensions, similar to measures introduced during the Covid-19 pandemic.
Industry groups say exporters are facing a shortage of containers, suspension or cancellation of vessel calls to the Middle East, and sharply rising logistics costs.
They have also requested urgent government support to mitigate the impact of shipping disruptions triggered by the Iran crisis and instability across key maritime routes.
International freight rates have risen by an estimated 15–20 per cent, while war-risk surcharges and insurance premiums for Gulf-bound shipments have surged. Marine fuel oil prices have also climbed to around $580 per tonne from about $520, according to the Indian Register of Exporters Federation (IREF).
Exporters have also urged the government to waive port-related charges such as storage and demurrage when cargo is rolled over due to vessel cancellations or sharp freight increases beyond their control.
They have further sought facilitation for cargo in transit to be returned, redirected or diverted, with assistance from customs authorities and the Reserve Bank of India for documentation and payment adjustments.
Rice exporters have asked the government to issue an official advisory recognising the disruption as a force majeure-type event, which they say would help prevent contractual penalties.
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