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The Economic Times
The Economic Times
Shariq Khan

Recurring West Asia tensions force MSME exporters to prioritise resilience over cost savings

Renewed tensions in West Asia have once again raised concerns among Indian exporters over shipping delays, higher freight costs, and supply chain disruptions. Industry leaders say these recurring disruptions highlight the fact that export competitiveness can no longer depend only on low production costs; resilience and supply chain diversification have become equally critical.

Industry officials say geopolitical tensions, volatile commodity prices, and uncertainty around key shipping routes are becoming long-term challenges for exporters, especially micro, small, and medium enterprises (MSMEs) in the country. Notably, the MSME sector contributes nearly 48% to India’s exports but has limited capacity to absorb rising costs and prolonged disruptions.

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