What Happened
- Iran's shutdown of the Strait of Hormuz following US-Israel strikes has directly impacted Indian shipping operations and exporters servicing Gulf markets.
- India's Directorate General of Shipping (DG Shipping) issued urgent advisories directing RPSL (Recruiting and Placement Service Licence) companies, ship owners, managers, agents, and seafarers' unions to submit details of all Indian crew members currently in Iran, Iranian waters, or adjacent areas.
- Indian-flagged vessels and Indian seafarers aboard foreign-flagged ships have been advised to exercise "utmost caution" while navigating the Strait of Hormuz and adjacent waters, given the prevailing security situation.
- DG Shipping also advised against sending Indian seafarers to Iran for new crew joining, given the uncertain security environment.
- India's non-oil exports worth approximately USD 47.6 billion — approximately 13.2% of India's total non-oil exports — are at risk, as these goods are shipped to Gulf economies that rely on Hormuz-linked trade routes.
- Indian exporters of textiles, engineering goods, gems and jewellery, pharmaceuticals, and chemicals to Gulf markets are in "wait and watch" mode, with shipping companies raising freight rates and rerouting where possible.
Static Topic Bridges
Directorate General of Shipping (DG Shipping) — Functions and Regulatory Authority
The Directorate General of Shipping (DG Shipping) is the apex body for maritime regulation in India, functioning under the Ministry of Ports, Shipping and Waterways. Established under the Merchant Shipping Act, 1958, it is the principal statutory authority for administering India's maritime laws and regulating the Indian shipping industry.
- Legal basis: Merchant Shipping Act, 1958 (MSA 1958) — the primary legislation governing Indian merchant shipping. Covers registration, survey, safety, crew certification, and carriage of goods.
- Key functions: Registration of Indian vessels, certification of seafarers, inquiry into maritime accidents, enforcement of SOLAS (Safety of Life at Sea) conventions, administration of RPSL for crew recruitment.
- RPSL (Recruiting and Placement Service Licence): Issued by DG Shipping to authorise manning agents who recruit Indian seafarers for domestic and foreign vessels — all such entities are regulated and their details trackable.
- India has approximately 1.7–2 lakh Indian seafarers serving on international vessels — making India one of the top global suppliers of maritime manpower.
- DG Shipping advisories (the type issued in this crisis) are not legally binding orders to exit — they are formal safety communications that carry regulatory weight and trigger insurance/liability implications.
- The Merchant Shipping Act also implements India's international maritime obligations under IMO (International Maritime Organization) conventions.
Connection to this news: DG Shipping's advisory system is the formal mechanism by which the Indian government communicates maritime risk to its shipping community. In the Hormuz crisis, the advisory enables DG Shipping to account for Indian seafarers in the danger zone while warning against new assignments — a precautionary protection measure.
India's Export Profile and Gulf Exposure — Trade Vulnerability
India's external trade with the Gulf Cooperation Council (GCC) — comprising Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, and Oman — is substantial. The Strait of Hormuz is not just a route for oil imports; it is also the primary maritime corridor for India's non-oil exports to Gulf markets.
- India-GCC bilateral trade (2023–24): Approximately USD 160–180 billion in total trade (goods + services).
- UAE alone is India's second-largest export destination (after the US) — accounting for approximately USD 35 billion in Indian goods exports.
- Key Indian export categories to the Gulf: gems and jewellery, engineering goods, textiles and garments, petroleum products (refined), pharmaceuticals, food products.
- Indian diaspora in Gulf: Approximately 8–9 million Indian workers in GCC states — their remittances (estimated USD 35–40 billion/year from the Gulf) would be disrupted by any escalation affecting the resident Indian community.
- The disruption also affects logistics costs globally: insurance premiums for shipping through or near Hormuz spiked sharply after the closure announcement, analogous to the Red Sea shipping insurance spikes seen during the Houthi attacks of 2023–24.
- India's largest port for Gulf trade: JNPA (Jawaharlal Nehru Port Authority, Navi Mumbai) — the country's busiest container port, handling a significant share of Gulf-bound cargo.
Connection to this news: The 13.2% share of non-oil exports dependent on Hormuz-linked routes reveals that India's trade vulnerability goes well beyond oil — disruption to Gulf-bound export corridors directly impacts India's export revenue, current account, and the livelihoods of Indian diaspora workers in the Gulf.
Maritime Chokepoints and India's Shipping Strategy
India's trade is overwhelmingly seaborne — approximately 95% of India's trade by volume and 68% by value is carried by sea, making maritime route security a core element of national economic security. The Strait of Hormuz is one of four critical maritime chokepoints relevant to India — alongside the Strait of Malacca (Southeast Asia trade), Bab-el-Mandeb (Red Sea / Suez route), and the Lombok Strait (alternative Pacific route).
- Bab-el-Mandeb: Already disrupted by Houthi attacks in the Red Sea (2023–2025), forcing vessels around the Cape of Good Hope — adding 10–14 days of sailing time and significant cost.
- Strait of Malacca: Carries approximately 25–30% of global trade; critical for India's ASEAN and East Asia trade. Patrolled under the Malacca Straits Patrol (MSP) — involving Indonesia, Malaysia, Singapore, Thailand.
- India's Maritime Security Strategy (2015): Identifies freedom of navigation and protection of SLOC (Sea Lines of Communication) as core interests.
- Indian Navy's role: India has deployed warships in the Gulf of Aden/Arabian Sea for counter-piracy operations (Operation Sankalp during earlier Iran-US tensions in 2019) and conducts regular maritime patrol in the Indian Ocean Region (IOR).
- QUAD (India, US, Japan, Australia) has a maritime security dimension — including information sharing on maritime domain awareness (MDA) in the Indo-Pacific, though this does not extend to the Persian Gulf.
Connection to this news: The Hormuz crisis, coming on top of the already-disrupted Red Sea route (Bab-el-Mandeb), means Indian shippers face simultaneous disruptions at two of their most important maritime chokepoints — creating a compounded logistics and cost crisis for Indian exporters.
Key Facts & Data
- India's non-oil exports at risk due to Hormuz closure: ~USD 47.6 billion (~13.2% of total non-oil exports)
- Indian seafarers on international vessels: ~1.7–2 lakh (one of world's top suppliers of maritime manpower)
- India-GCC bilateral trade: ~USD 160–180 billion (goods + services)
- UAE is India's second-largest export destination (~USD 35 billion in goods exports)
- Indian diaspora in Gulf: ~8–9 million; remittances: ~USD 35–40 billion/year
- DG Shipping: functions under Merchant Shipping Act, 1958; under Ministry of Ports, Shipping and Waterways
- India's trade by sea: ~95% by volume, ~68% by value
- JNPA (Navi Mumbai): India's busiest container port handling Gulf-bound cargo
- Key maritime chokepoints for India: Strait of Hormuz, Strait of Malacca, Bab-el-Mandeb, Lombok Strait
- India's Maritime Security Strategy published: 2015