India’s export sector warned of mounting headwinds as Iran’s closure of the Strait of Hormuz disrupts shipping lanes and elongates delivery times for manufactured goods bound for Europe and the Middle East.
Federation leaders said small and medium exporters face cancellation penalties from buyers unless they absorb costly air freight or circuitous sea routes around Africa.
Pharmaceutical and textile consignments are especially vulnerable because many rely on just-in-time contracts with thin margin buffers.
Trade ministry officials are exploring bilateral shipping guarantees and emergency credit lines, but exporters said diplomatic reopening of Hormuz remains the only durable fix.
Diplomatic sources on June 12, 2026 said reopening the Strait of Hormuz and lifting shipping restrictions remained central to any ceasefire arrangement.
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Sources:
https://www.business-standard.com/economy