HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
US-Iran agreement to act as growth catalyst for India's export-import sector: FIEO President
Jun-19-2026

President of the Federation of Indian Export Organisations (FIEO) S C Ralhan has welcomed the landmark Memorandum of Understanding (MoU) signed between the US and Iran to de-escalate the West Asia conflict, terming it as a significant breakthrough that promises to reshape global trade dynamics. He said that the agreement provides much-needed macroeconomic relief for India's export-import sector, acting as a powerful catalyst for growth after months of regional disruptions.

He noted that the conflict had weighed heavily on India's trade performance, particularly exports to Middle Eastern markets, which witnessed substantial contraction during the peak of the crisis. Core sectors bore the brunt of this instability. With the cessation of hostilities and the broader economic integration of the region, he anticipates an immediate and robust revival in order books. Besides, according to him, a stable West Asia unlocks pent-up consumer and industrial demand, paving the way for Indian exporters to scale up their presence and accelerate shipment trajectories over the next few fiscal quarters. 

FIEO President further said that as a nation dependent on imports for over 85% of its crude oil requirements, global energy prices dictate the country’s domestic manufacturing cost structures. The threat to regional supply chains previously drove Brent crude to elevated levels, spiking India's wholesale inflation. Following the MoU, Brent crude has corrected sharply toward the $78 per barrel range. This cooling of the geopolitical risk premium directly lowers the import bill, reduces fuel-led inflation, and dramatically softens input costs for heavily crude-dependent export sectors like plastics, paints, textiles, and chemicals, improving the country’s global competitiveness.

    


  RELATED NEWS >>