New Delhi, March 2 Military conflict in the Middle East region is expected to impact the export of electronics from India, as well as increase production costs in the country, electronic industry associations said on Monday.
The India Cellular and Electronics Association (ICEA), whose members include Apple, Vivo, Oppo, Lava, Dixon, etc., said that India's electronics exports are closely integrated with global supply chains, and shipments primarily move through air freight.
"Any disruption in the airspace or key trade corridors in the Middle East can create short-term logistical challenges. If instability persists for a longer period, exports may face temporary delays," said ICEA Chairman Pankaj Mohindroo.
He said that India's growing role in global electronics manufacturing and its expanding presence in Middle Eastern markets provide structural strength.
"Geopolitical bottlenecks can raise logistics costs and extend transit times, particularly if instability persists. Even in a prolonged scenario, trade flows are likely to adjust and stabilize as supply chains adapt and demand fundamentals remain strong," Mohindroo said.
Electronics exports from the country have crossed ₹4 lakh crore (USD 44 billion) in 2025 and are expected to grow when four semiconductor plants begin production this year. Smartphones have become India's top export category, with overseas shipments worth USD 30 billion (around ₹2.74 lakh crore) in 2025.
The electronics components industry body, Elcina, said that India's relations with the Middle East are multifaceted across all domains, including human, social, economic, and political.
"In recent years, the Middle East has become a major destination for exports of electronics, particularly mobiles, consumer electronics, and components, with the UAE, Saudi Arabia, and Israel as key markets. Dubai also serves as a re-export hub for Indian goods, as it is a major logistics, trade, and warehousing hub. It is estimated that annual exports of over USD 4 billion are at risk," said Elcina Secretary General Rajoo Goel.
He said that the general impact on economic activity, prices, the value of the Indian Rupee, and revenues from services and the transfer of funds by Indians working in the UAE and Saudi Arabia would be affected. "Crude oil prices have increased by over 6 per cent, and the Rupee value has declined, while stock markets are in a bearish mode," Goel said.
