Escalating conflict in the Middle East has begun to severely disrupt Indian exports, with several key air and maritime routes either suspended or operating under heavy restrictions. Exporters across multiple sectors are reporting mounting financial losses as cargo movement slows and shipments remain stranded.
Shipping crisis disrupts key trade corridors
The disruption follows the ongoing conflict involving Iran, the United States and Israel, which has triggered a major security crisis around the Strait of Hormuz since February 28, 2026. The strategic waterway is one of the most critical global shipping corridors, handling a large share of international oil and cargo traffic. Maritime traffic through the strait has dropped sharply after Iran warned that vessels attempting to pass through could be targeted, effectively halting normal shipping movement.
Major container shipping companies have suspended operations through the region and some vessels are being rerouted around Africa’s Cape of Good Hope, a diversion that significantly increases travel time and freight costs. Global supply chains have also been affected as hundreds of ships remain stalled in the Persian Gulf.
Exports stranded at Indian ports
The impact has already been felt in India. Agricultural shipments from Maharashtra have been disrupted with around 800 tonnes of produce stranded at the Jawaharlal Nehru Port Authority near Mumbai. Export consignments including chickpea, soybean meal, maize and onion seeds that were meant for markets in Central Asia and the Gulf are unable to move due to the closure of key ports such as Iran’s Bandar Abbas.
Perishable items including pomegranates and grapes are particularly vulnerable as exporters struggle to store produce that was scheduled for immediate shipment.
Air cargo operations hit
Air cargo routes have also been affected as several Middle Eastern airspaces face restrictions and flight services to certain destinations remain suspended. Exporters of fruits, vegetables and seafood from states such as Kerala have reported that shipments to Gulf countries have slowed sharply following the suspension of multiple flights.
Exporters warn losses running into crores
Industry representatives say the disruption has already caused losses worth several crores of rupees as shipments remain stuck and new orders are delayed. Rising freight charges, insurance costs and longer shipping routes are further squeezing margins.
With the Middle East serving as a crucial trade corridor for Indian exports, businesses are closely watching geopolitical developments in the region. Until shipping and aviation routes stabilise, exporters fear the financial impact could continue to grow.
