The ongoing crisis in West Asia is significantly impacting textile imports, as escalating tensions disrupt global supply chains and raise shipping costs. With freight rates doubling amid the conflict, Indian exporters are particularly affected, especially in the low-margin textile sector.
The situation has prompted calls for the development of a robust Indian shipping line to mitigate reliance on foreign carriers, which have been increasingly hesitant to allocate slots for Indian goods. As geopolitical instability continues, the textile industry faces uncertainty, highlighting the urgent need for strategic adaptations to maintain import levels and ensure market stability.
Citations:
[1] https://indianexpress.com/article/business/middle-east-crisis-israel-hamas-iran-gaza-war-india-shipping-9626317/
[2] https://webapps.ilo.org/static/english/intserv/working-papers/wp054/index.html
[3] https://www.indiatoday.in/global/story/west-asia-in-turmoil-will-there-be-ripple-effects-on-india-2611779-2024-10-05
[4] https://www.imf.org/external/pubs/ft/fandd/1998/09/imfdirec.htm
[5] https://www.fastmarkets.com/insights/russia-posts-record-wheat-exports-for-2023-24/
[6] https://www.tridge.com/news/union-of-exporters-russian-grain-exports-have-upda
[7] https://en.bd-pratidin.com/economy/2024/10/19/20906
[8] https://www.grainunion.kz/en/article/2148