West Asia crisis: Piled-up cargo, frozen orders hit textile industry

Vessels wait outside ports as buyers in the UAE and Gulf pause shipments, raising freight, insurance and margin risks for Tiruppur and Surat exporters

Textile industry players on Monday said that their exports to the West Asia market are already stuck at Indian ports while major customers have already put the orders on hold till the crisis in the region is over.

 

The region is the third-largest export market for Indian knitwear industry, contributing 11 per cent or ₹6,980 crore to the total exports of ₹65,179 crore in financial year 2024-25 (FY25). Out of the total West Asia exposure, over 8 per cent or ₹5,403 crore was to the United Arab Emirates (UAE) in FY25.

 

"The ongoing crisis in West Asia has affected the textile industry as vessels are standing outside the ports. Customers have instructed us to not ship," said Elangovan Viswanathan, president of the Buying Agents Association and managing director of SNQS International.

 

"For knitwear hub Tiruppur, after the US, the UAE is the second-biggest market. This is because we use it as a destination hub for Africa, Russia, and several other regions. All these orders are stuck now," said Viswanathan. For Tiruppur, most of its orders to the region go from Cochin Port. The major customers for Tiruppur from the region are reportedly the Apparel group, Landmark, and the Alshaya group. This comes as a shock to Tiruppur that was already reeling from stress due to a ₹15,000 crore hit so far this year due to the higher US tariff.

 

Take the case of Dubai. It is not just a buyer, but a redistribution hub connecting Indian textiles to more than 40 regional markets. That makes stability in the Gulf central to order flow continuity. The immediate risk, according to experts, is not a sudden export halt but margin compression.

 

"Textile exporters operate on tight pricing structures. If maritime risk through the Strait of Hormuz increases insurance premiums or freight volatility, even small cost shifts can erode competitiveness. Unlike heavy industry, textiles cannot easily absorb logistics spikes. There is also demand sensitivity. Apparel is discretionary. If geopolitical tension causes higher energy prices and economic uncertainty in Gulf markets, order cycles may slow and payment timelines may extend," said Jitendra Srivastava, chief executive officer (CEO), Triton Logistics and Maritime.

 

"The real variable is duration. Short disruptions create temporary freight volatility. Prolonged instability alters buyer behaviour and inventory planning. For export clusters like Surat, West Asia is not an optional market. It is embedded in the distribution model. Stability in the region directly influences textile cash flow, margins, and order visibility," he added. 

The Confederation of Indian Textile Industry (CITI) welcomed the assurance of support by the Indian authorities to ensure continuity of EXIM logistics and mitigate any disruptions to India’s trade flows. “Coming in the backdrop of the continuing uncertainty on the US tariffs issue and the recent reduction in the rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, the tumultuous developments in West Asia have further added to the challenges faced by Indian textile and apparel exporters,” CITI Chairman Shri Ashwin Chandran said.

 

During the ongoing FY26, India exported around ₹45,210 crore worth of knitwear. Out of this, 33 per cent or ₹14,805 crore was to the US market, followed by 30 per cent or ₹13,511 crore to the UK. The UAE contributed 9 per cent or ₹4,165 crore during the period, standing third. Other West Asian countries contributed around ₹889 crore or 2 per cent.