The Federation of Indian Export Organisations (FIEO) anticipates a 2-3% decline in India's merchandise exports for the fiscal year 2025-26, attributing this to global economic uncertainties heightened by the West Asia crisis. FIEO President S C Ralhan noted a significant 7-8% drop in shipments during March 2025, largely due to the joint military actions by the US and Israel against Iran, which disrupted shipping routes and increased costs for air transport and insurance. The crisis has also led to surging prices for raw materials like steel and plastic. Despite these challenges, India's total goods and services exports are projected to grow by 5-6%, with figures from 2024-25 showing exports at USD 825 billion. Ralhan expressed optimism that a recent ceasefire between the US and Iran could alleviate some shipping disruptions, allowing for a stabilization of export activities in the coming months. The Gulf region remains a crucial market for India, with bilateral trade valued at USD 178 billion in 2024-25, making it essential for sectors such as gems, jewellery, rice, and pharmaceuticals.