West Asia conflict impact on Indian maritime trade

Conflict in West Asia has caused significant disruptions to maritime trade routes, including the Red Sea, Gulf of Oman, and Strait of Hormuz. These instabilities have driven India’s shipping costs toward $100 billion due to higher insurance premiums, longer voyages, and increased fuel consumption, impacting sectors such as engineering, chemicals, textiles, petroleum, and agriculture.

In the seafood industry, specifically in Odisha, marine product exports to the Middle East saw a decline of 14.57% during 2025-26, resulting in an estimated loss of Rs 23.40 crore. However, Odisha’s total seafood export value rose by 16.36% as demand from other global destinations helped offset regional losses.

In response to logistical challenges, Indian rice exporters have implemented new strategies to manage costs. By shifting from standard shipping to bulk arrangements for shipments to Iraq, exporters achieved a 74% reduction in freight costs, lowering rates from US$350 to US$90 per tonne. This initiative resulted in estimated gross savings of approximately US$26.6 million. Despite regional tensions, India’s rice export earnings grew by 12.9% between April and August 2026, with West Asia continuing to account for roughly 70% of total basmati export volume.