West Asia & Gulf Conflict May Disrupt Indian Textile Exports; HEWA Seeks Urgent Government Support
HEWA said the evolving situation coincides with a key export period for Indian suppliers, who are currently dispatching peak summer shipments to European markets and fulfilling festive-related demand in Gulf and international destinations. The association noted that exporters are already facing pressure from global tariff uncertainty and ongoing geopolitical tensions, and that the latest escalation may intensify operational and financial strain.
According to industry estimates, close to 80% of India’s merchandise exports to Europe and the US East Coast move through maritime routes linked to the Strait of Hormuz, which is also a major passage for India’s crude oil imports. Disruption in this corridor, along with delays at ports such as Jebel Ali, Ashdod and nearby transshipment hubs, could lead to shipment delays in the coming weeks.
HEWA indicated that if transit times extend beyond two weeks, the European peak summer retail season may be affected, especially for towels, bed linen and made-ups. Extended transit is also expected to raise freight charges and war-risk insurance premiums and to postpone payment realisation for exporters.
The association added that Jebel Ali port functions as a major re-export and transshipment centre for Indian goods destined for MENA and African markets. Any interruption in this logistics network could result in shipment congestion, deferred orders and export uncertainty across several destinations.
In response to rising risks, HEWA has advised exporters to proceed with shipments only after securing adequate ECGC protection and comprehensive marine insurance, as prolonged transit or port disruption may increase the likelihood of post-shipment order cancellations and delayed payments.
Mr. Anant Srivastava, President, HEWA, stated:
“Dubai’s logistics ecosystem acts as a key gateway for exports to MENA, Africa and Gulf markets. Even a two-week increase in transit time may raise freight costs by 25–30% while delaying exporter payment cycles. Immediate policy stability and financial support are essential for MSME exporters to sustain operations during this evolving situation.”
HEWA Director Vikas Singh Chauhan has called on the Government of India to introduce immediate stabilisation measures, including:
- Long-term extension of RoSCTL without rate reduction
- Strengthening and implementation of the Interest Subvention Scheme
- Availability of affordable working capital and export credit
- Logistics stabilisation support to offset sudden freight escalation
- Faster refund disbursement to maintain exporter liquidity
The association said that the textile and home textile sector remains one of India’s largest employment-generating industries and that timely government action will be important to protect MSME exporters, preserve jobs and maintain export performance amid emerging global disruptions.