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West Asia Conflict Squeezes India's Apparel Exports
16 Mar
Summary
- Apparel exporters face higher costs due to shipping diversions.
- War surcharges add ₹12 to ₹55 per garment for Indian exports.
- Deliveries delayed by 10-15 days due to extended shipping routes.
India's apparel exporters are experiencing significant cost increases and delivery disruptions due to the ongoing conflict in West Asia. Shipping companies have implemented Emergency War Surcharges, adding between ₹12 and ₹55 per garment for Indian ready-made garments destined for the Gulf markets.
These logistical challenges include extended shipping routes around the Cape of Good Hope, adding approximately 6,500 km and delaying deliveries by 10 to 15 days. This rerouting also increases fuel and insurance expenses for exporters.
West Asia remains a vital market for India's apparel sector, representing about 11.8% of the nation's total garment exports. In the previous financial year, India exported approximately $1.9 billion worth of garments to this region, highlighting the significant economic impact of these current disruptions.
