Military conflict in Middle East to hit electronics export from India

New Delhi, Mar 2 (PTI) Military conflict in the Middle East region is expected to hit the export of electronics from India as well as increase the production cost in the country, electronic industry associations said on Monday.

India Cellular and Electronics Association (ICEA), whose members include Apple, Vivo, Oppo, Lava, Dixon, etc, said India’s electronics exports are closely integrated with global supply chains and shipments move primarily through air freight.

“Any disruption in Middle Eastern airspace or key trade corridors can create short-term logistical challenges. If instability persists for a longer period, exports may face temporary delays,” ICEA Chairman Pankaj Mohindroo said.

He said that India’s growing role in global electronics manufacturing and its expanding presence in Middle Eastern markets provide structural strength.

“Geopolitical chokepoints can raise logistics costs and extend transit times, particularly if instability persists. Even in a prolonged scenario, trade flows are likely to adjust and stabilise as supply chains adapt and demand fundamentals remain strong,” Mohindroo said.

Electronics exports from the country have crossed Rs 4 lakh crore (USD 44 billion) in 2025 and are expected to grow when four semiconductor plants begin production this year. Smartphones have become India's top export category with overseas shipments worth USD 30 billion (around Rs 2.74 lakh crore) in 2025.

Electronics components industry body Elcina said that India’s relations with the Middle East are multifaceted across all domains, human, social, economic and political.

“In recent years, the Middle East has become a major destination for exports of electronics, particularly mobiles, consumer electronics and also components, with the UAE, Saudi Arabia and Israel as key markets. Dubai also serves as a re-export hub for Indian goods as it is a huge logistics, trade and warehousing hub. It is estimated that annual exports of over USD 4 billion are on the block and would face disruptions,” Elcina Secretary General Rajoo Goel said.

He said that the general impact on economic activity, prices, value of the Indian Rupee and revenues from services and transfer of funds by Indians working in the UAE and Saudi Arabia would suffer. “Crude oil prices have increased by over 6 per cent and the Rupee value has declined while stock markets are in bearish mode,” Goel said. PTI PRS PRS MR