Iran war impact: Govt mulling diversion of stranded cargo to new markets

New Delhi: India has begun assessing whether export cargoes stranded or in transit due to the escalating West Asia crisis can be diverted to alternative markets, as the government moves to cushion the impact of the disruption on outbound shipments.

The commerce and industry ministry has asked goods exporters to provide details on the scope for rerouting consignments currently stuck in transit or awaiting shipment, people familiar with the matter said.

In parallel, authorities have also reached out to services exporters to assess potential risks to services trade, seeking inputs on restrictions affecting the movement of professionals, regulatory or compliance barriers, and reliance on overseas technology platforms that could disrupt exports, an official said.

“We have sought industry feedback on the impact of the West Asia turmoil and the support needed to mitigate risks arising from this crisis,” said an official.

Exporters have been asked to give tariff codes and value-wise details of cargoes which are impacted, and specific issues they face related to high raw material prices and container shortages.

The government has also asked service exporters to share any supply-chain related challenges impacting services exports including connectivity and digital infrastructure issues affecting cross-border service delivery and dependence on foreign digital ecosystems adversely affecting trade.
“The issues are being taken up in the inter-ministerial group which is monitoring global developments affecting supply chains and export flows,” the official said, adding that this will help mitigate risks by identifying sector-specific vulnerabilities.