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West Asia Conflicts Drive MSME Exporters to Focus on Resilient Supply Chains

MSMEs Prioritise Supply Chain Resilience

MSME Supply Chain Resilience

News: Recurring tensions in West Asia are increasing pressure on Indian MSME exporters, driving up freight costs, delaying shipments, and exposing vulnerabilities in global supply chains. Industry leaders say exporters must now prioritise resilience and diversification alongside cost competitiveness to remain globally competitive.

The MSME sector, which contributes nearly 48% of India’s exports, faces mounting challenges from higher logistics costs, volatile commodity prices, insurance premiums, and working capital constraints.

Experts believe geopolitical risks have become a long-term reality, making resilient supply chains, digital trade, alternative export markets, and stronger logistics infrastructure essential. Government initiatives, including the RELIEF scheme and the Export Promotion Mission, offer financial support, but industry stakeholders stress that improved shipping capacity, container availability, and supply chain diversification are critical. They also see the China+1 strategy as a major opportunity for India to emerge as a reliable global sourcing destination.