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West Asia Conflict Puts $50B Exports at Risk

As the conflict in West Asia enters its 11th day, India’s exports to the Gulf Cooperation Council (GCC) countries are facing serious disruptions. According to government sources, exports worth around $40–50 billion to the Gulf region could be affected due to the ongoing tensions.

Officials said that about 3.5 lakh shipping containers currently located in the Gulf region are stuck because of the unstable situation. Several ships carrying goods are waiting for clearance or safe passage, causing delays in international trade.

Many important sectors are at risk due to the disruption. These include oil products, precious metals, gems and jewellery, which are major export items from India to Gulf countries. Other industries such as food products, processed foods, textiles, and apparel are also likely to face difficulties if the situation continues.

Sources said that exports have not completely stopped, but shipments are taking longer than usual. Some vessels are now using alternative sea routes to avoid sensitive areas affected by the conflict. Even though the Gulf nations are under pressure due to the regional crisis, they are reportedly trying to keep trade routes open for India to avoid major supply disruptions.

Several Indian cargo ships are currently stranded in the Arabian Sea and near Oman waters, waiting for permission or safe conditions to move forward. This has slowed the movement of goods and created uncertainty for exporters.

Authorities also said it has become difficult to retrieve containers that are stuck deep inside Gulf ports, adding to the challenges faced by shipping companies and exporters.

The impact of the situation is also being felt within India. In Kolkata, the supply of non-domestic LPG cylinders was reportedly stopped from Tuesday morning. This has created problems for restaurants and food businesses in the city, many of which rely on these cylinders for daily operations. Due to the shortage, several restaurants are now facing the possibility of temporary closure.

The situation remains tense as Mohammad Bagher Qalibaf recently rejected suggestions that Iran is seeking a ceasefire in the ongoing conflict. His statement has increased concerns that the crisis may continue for a longer period.

Experts warn that if tensions continue to escalate, global trade, shipping routes, and energy supplies could face further disruptions, affecting many countries including India.

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