Govt discusses potential impact of West Asia crisis on trade; ensures all facilitation

New Delhi, Mar 2 (PTI) The government on Monday held inter-ministerial deliberations with exporters and logistics players to assess the impact of escalating tensions in the West Asian region on India's trade and assured all measures to mitigate any disruptions.

The US and Israel jointly launched military strikes on Iran on Saturday. Iran responded by firing drones and missiles at Israel and US military installations around the Gulf, and also at the global business hub of Dubai.

The meeting was called by the Department of Commerce.

It held a consultation with all stakeholder ministries, key logistics and trade facilitation partners to review the emerging geopolitical situation and its potential impact on India's export-import (EXIM) cargo flows, including the export ecosystem.

The ministry said that stakeholders presented an assessment of the evolving operational environment, including routing and transit-time changes, vessel scheduling adjustments, container/equipment availability, freight and insurance cost trends, and implications for time-sensitive exports.

The participants emphasised the need to maintain predictability in cargo movement, minimise avoidable delays, and ensure seamless documentation and payment processes for exporters and importers.

"The Department reiterated the Government of India's priority of ensuring continuity of EXIM logistics and mitigating any disruptions to India's trade flows," it said.

It was also emphasised that the approach will remain facilitative and coordinated, with a focus on maintaining supply chain resilience, protecting the interests of exporters—particularly MSMEs—with a view that essential imports required for domestic production and consumption are not adversely affected.

"During the meeting, it was agreed amongst the stakeholders to maintain close, real-time coordination for monitoring route and capacity developments, surcharges, and equipment availability," it said.

Mechanisms for facilitation of time-sensitive export segments such as perishables, pharmaceuticals, and high-value manufactured exports were also discussed.

The meeting emphasised strengthening facilitation at ports/ICDs and ensuring smooth cargo evacuation to avoid congestion and extended dwell times.

The government reiterated its readiness to facilitate trade operations, including procedural flexibility in export-related authorisations in cases of genuine disruption; coordination with Customs authorities to ensure smooth clearance; and engagement with financial and insurance institutions to support exporter interests.

"The Department reaffirmed that it will continue to engage closely with all stakeholders and relevant Ministries/ Departments to ensure that India's trade continues to move efficiently and that any emerging issues are addressed in a timely manner," the ministry said.

The meeting was chaired by Special Secretary in the Department, Suchindra Misra, and Lav Agarwal, Director General of Foreign Trade (DGFT).

The meeting was attended by representatives from logistics operators and shipping lines/forwarders, Central Board of Indirect Taxes and Customs, Department of Financial Services, Ministry of Petroleum and Natural Gas, Ministry of Ports, Shipping and Waterways, the Reserve Bank of India, export promotion ecosystem and other concerned agencies. PTI RR HVA