West Asia conflict | Piyush Goyal says govt likely to offer insurance support to exporters

New Delhi: The Indian government is likely to come out with insurance support measures to help exporters affected due to ongoing war in West Asia, Commerce and Industry Minister Piyush Goyal said on Tuesday.

Talking to reporters, Goyal said an inter-ministerial group is monitoring the evolving situation on a daily basis.

He said the customs department has come out with norms for dealing with export cargo returning to Indian ports due to the closure of the Strait of Hormuz and disruptions in maritime routes due to the US-Israel-Iran war.

 “We are looking to develop some new schemes like insurance support. We are consulting ECGC (Export Credit Guarantee Corporation of India) and other departments on that,” he said.

The minister added that the government was also examining ways to support exporters whose consignments have already been shipped but are facing difficulties due to the war in West Asia.

The Indian shipments have been badly hit due to the ongoing conflict in West Asia, which is a major export destination for India.

According to the Federation of Indian Export Organisations (FIEO), freight cost of Indian exporters has surged by around 300 per cent due to the West Asia crisis. Trade bodies have been pitching for interest subvention and freight subsidy to tide over the crisis.

Exporters dealing in food items are among the worst hit. India exported $11.8 billion worth of agricultural and food products to the West Asia region in 2025. Cereals, fruits, vegetables and spices dominate India’s exports basket to the Gulf region.

Meanwhile, speaking at the International Food & Hospitality fair, Goyal said India’s annual food and agricultural exports have reached Rs 5 lakh crore ($55 billion), the seventh largest globally.

He noted that in the eleven year period from 2014 to 2025, India’s agri and food exports witnessed significant growth. Exports of processed foods have increased four-fold, fruit and pulses exports have tripled, processed vegetable exports have quadrupled, cocoa exports have tripled, and cereal exports have doubled. Rice exports alone have grown by 62 per cent during this period, he said.

Goyal claimed that nine Free Trade Agreements (FTAs) concluded by India over the past three and a half years have opened access to 38 developed and prosperous countries, providing vast market opportunities for Indian exporters.

India today has preferential market access covering nearly two-thirds of global trade, which strengthens India’s position as an attractive investment destination and enables Indian businesses to integrate into global value chains, he added.