ECONOMY
FIEO sees a 3% decline in India’s goods exports in FY26 amid West Asian crisis
- IBJ Bureau
- Apr 10, 2026
The country’s merchandise exports are expected to register a fall of 2 to 3 per cent in 2025-26 due to global economic uncertainties, aggravated by the West Asia crisis, according to the Federation of Indian Export Organisations (FIEO).
FIEO President S C Ralhan has said that the crisis may have led to a decline in shipments by 7 to 8 per cent in March.
The joint attack launched by the US and Israel on Iran on February 28 has severely disrupted the country’s exports to West Asia, pushed up shipping freight rates, air transport prices and insurance costs.
Disruptions in the movement of oil and gas from West Asian countries have also led to an increase in the prices of raw materials, such as steel, plastic and rubber, Mr Ralhan has added.
However, he has said that India’s goods and services exports are likely to rise by 5 to 6 per cent. India had registered total exports of $825 billion in FY25, with $437 billion in goods, while services had clocked exports worth $388 billion.
Mr Ralhan has expressed hope that ship movements will resume soon following the ceasefire announcement for two weeks between the US and Iran.
He has suggested that the government should look into issues, such as high interest rates, simplification of advance authorisation redemption, and harmonisation of nomenclature between the Directorate General of Foreign Trade and the Customs Department.
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