The Commerce Ministry has called a meeting for exporters, shipping companies, freight forwarders, and officials from various ministries on Monday to evaluate how the rising tensions in the West Asia region are affecting India's trade.

On Saturday, military strikes on Iran were jointly initiated by the US and Israel. Iran retaliated by launching drones and missiles targeting Israel and US military sites in the Gulf, as well as the international business center of Dubai.

The official stated that the ministry convened the meeting in a hybrid format to evaluate the effects of the changing circumstances on India's trade.

Exporters have voiced significant worries that the conflict will impact trade pathways through the Strait of Hormuz and the Bab el-Mandeb Strait. Both are essential for the navigation of vessels. It links India with the Gulf area, North America, and Europe.

Also Read: Republic Day 2026: India's Tech Triumphs & Global Leadership

President SC Ralhan of the Federation of Indian Export Organizations (FIEO) stated that the current conflict has started to disturb established global logistics networks.

Aviation pathways are changing, and shipping commerce across the Red Sea and vital Gulf passages encounters increased unpredictability. Ralhan stated that if delays persist, shipments might increasingly need to take a detour around the Cape of Good Hope, which could extend transit times for Europe and the United States by approximately 15 to 20 days.

The disturbances could drive up freight charges and insurance costs for merchants.

Exporters mentioned that it could take several days to gain clarity on the accessibility of shipping capacity, new routes, insurance, and freight rates.

West Asia has key pathways that facilitate India's exports to the largest markets in the US and Europe.

Also Read: AI & Tech: Visionary Pre-Budget Insights from Industry Leaders

India exported $ 86.5 billion to the US, $ 98.4 billion to Europe, and $ 58.8 billion to West Asia. Collectively, these areas make up around 56 percent of India's goods exports.

Between 2023 and 2025, the strife between Israel and Hamas resulted in a notable increase in freight rates and transportation duration. Shipping companies were forced to leave the Red Sea route and utilized the Cape of Good Hope at Africa's southern tip, extending transit times by 15-20 days between India and the West.

Also Read: NVIDIA's Rubin Moment at CES: AI Supercomputing Breakthrough

While the previous tensions were confined to a specific region, the current situation appears concerning.

Major shipping lines typically revise freight rates at the beginning of each month, and on Monday, updated rates will be released. In early 2026, the rates were decreasing.