The ongoing conflict in West Asia is increasing costs for India’s apparel exporters, with additional logistics expenses estimated to add between Rs. 12 (US $0.13) and Rs. 55 (US $0.60) to the cost of each garment shipped, according to the Apparel Export Promotion Council (AEPC).
The industry body said the increase is largely due to longer shipping routes and war-related surcharges imposed by shipping companies, which have raised freight costs for exporters sending cargo to the Gulf region.
AEPC stated that the ongoing conflict could also lead to a decline in apparel export orders to West Asia in the coming months. The council noted that continued hostilities may weaken consumer demand and affect brand confidence in the region, potentially reducing apparel consumption and export volumes.
The rise in costs comes as shipping companies impose an Emergency War Surcharge (EWS) on cargo destined for Gulf countries. According to AEPC estimates, the surcharge has increased shipping costs by around US $1,200 for a 20-foot container.
This additional expense translates into higher per-garment costs depending on the product category. For instance, the surcharge can add approximately Rs. 12 (US $0.13) to the cost of exporting a shirt, Rs. 18 (US $0.19) for a pair of trousers, Rs. 37 (US $0.40) for a women’s dress, Rs. 43 (US $0.47) for a two-piece suit and up to Rs. 55 (US $0.60) for a winter coat when shipped in a 20-foot container.
Shipping disruptions have further intensified pressure on exporters. Several shipping lines have suspended vessel movements through the Strait of Hormuz and the Red Sea, prompting cargo to be rerouted or rescheduled.
As a result, many shipments are now being diverted around the Cape of Good Hope in southern Africa. The longer route adds nearly 6,500 kilometres to the voyage and can delay deliveries by 10 to 15 days, while also increasing fuel and insurance costs.
Despite the disruption, West Asia remains an important destination for Indian garment exports, accounting for around 11.8% of the country’s ready-made apparel shipments.
Data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S) shows that India exported garments worth approximately US $1.9 billion to West Asian markets during the previous financial year.
