NEW DELHI (Gurpreet Singh) — The Union Commerce Ministry has convened an emergency high-level meeting on Monday, March 2, 2026, to evaluate the growing threat to India’s trade interests following the dramatic escalation of the Middle East conflict. The hybrid-mode session will bring together senior government officials, representatives from the Federation of Indian Export Organisations (FIEO), major shipping lines, and freight forwarders to assess the viability of critical maritime corridors and the potential for a massive spike in logistics costs.
The immediate trigger for the meeting is the reported unofficial “blockage” of the Strait of Hormuz by Iran’s Revolutionary Guard Corps (IRGC) following the death of Supreme Leader Ayatollah Ali Khamenei. While no formal closure has been declared, international tanker owners have begun suspending operations through the 33-km wide passage, which serves as the primary artery for India’s energy and merchandise trade. Exporters are particularly concerned that if the Strait remains inaccessible, cargo ships will be forced to reroute via the Cape of Good Hope, adding 15 to 20 days to transit times for shipments headed to North America and Europe.
“The ongoing conflict has already begun to disrupt established global logistics channels,” said FIEO President SC Ralhan. He warned that prolonged diversions would lead to a sharp rise in ocean freight rates and marine insurance premiums, which are already seeing “war-risk” surcharges. For India, the stakes are exceptionally high: the combined markets of the US, Europe, and West Asia account for approximately 56 per cent of the nation’s total merchandise exports, valued at hundreds of billions of dollars annually.
Beyond the movement of goods, the meeting will also address the crisis facing specific sectors. Rice exporters in Haryana have already reported a drop in basmati rates by ₹4–5 per kg as shipments to Iran and Afghanistan (via Bandar Abbas) remain stalled. Meanwhile, the Ministry is preparing contingency plans for a “Russia pivot” if energy supplies from the Gulf are severed for an extended period. Monday’s talks are expected to result in a calibrated policy response, including potential financial support or insurance subsidies to help Indian exporters maintain global competitiveness amidst the most significant regional disruption in decades.
