Gulf War Hits Rajasthan Exports Hard; Freight Costs Surge 8-Fold, Industries Face Shutdown
In industrial clusters such as Jalore, Kishangarh, and Ajmer, many factories have shut down due to rising input costs and stalled exports.
Published : March 31, 2026 at 2:19 PM IST
Jaipur: The ongoing conflict in West Asia has dealt a severe blow to Rajasthan’s export sector, with shipping costs skyrocketing and supply chains disrupted, forcing many exporters to halt operations.
Industry representatives said container freight charges have increased by six to eight times due to disruptions in international shipping routes. They have stated that the steep rise in logistics costs and delays has made it difficult for exporters to remain competitive in global markets, leading to order cancellations and a near standstill in shipments across key sectors.
Suresh Agarwal, president of the Federation of Rajasthan Trade and Industry, said industries such as marble, textiles, handicrafts, and gems and jewellery have been the worst affected. "Major export hubs including Jaipur, Jodhpur, and Bhilwara are witnessing a sharp slowdown, with small and medium enterprises facing mounting financial pressure due to delayed payments and rising costs," he said.
The crisis has been exacerbated by disruptions at ports and airports in West Asian countries, which have slowed down cargo movement. Freight charges for containers, which earlier averaged around $1,000, have now surged to between $6,000 and $8,000.
Additionally, longer shipping routes and heightened security checks have doubled transit times, making timely deliveries nearly impossible. Transporters report that vessels are being rerouted to avoid conflict zones in the West Asia and Red Sea region, further increasing costs.
Moreover, war risk surcharges have pushed insurance premiums from $1,200 to $2,400 per container. Delivery delays of 10-15 days too have become common, adding to the uncertainty. The impact is visible on the ground, with a large number of containers piling up in Jaipur’s Kanakpura area, sources said.
Across the country, an estimated 2,500 to 3,000 containers are reportedly stranded due to booking cancellations and shipping delays.
The crisis has also hit the granite and marble industry hard, with monthly business losses estimated at around Rs 800 crore.
In industrial clusters such as Jalore, Kishangarh, and Ajmer, many factories have shut down due to rising input costs and stalled exports. In Jalore alone, nearly 80 percent of units are on the verge of closure, with about 250 units already shutting down in the past two weeks, sources added.
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