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Why India's SMEs are suffering from Hormuz Strait crisis

Deutsche Welle · · 856 words · By Murali Krishnan
open_in_new Read the original article: https://www.dw.com/en/india-smes-iran-war-strait-of-hormuz-shipping-trade-geo-ec…

fact_checkFact-Check Results

10 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

check_circle Corroborated 4
info Single Source 3
help Insufficient Evidence 2
verified Verified By Reference 1
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“The effective halt of shipping through the Strait of Hormuz, initially by Iran and the subsequent US naval blockade of Iranian ports, is hitting multiple sectors in India's economy”
VERIFIED BY REFERENCE
Wikipedia explicitly confirms that shipping through the Strait of Hormuz has been largely blocked by Iran since February 28, 2026, following US and Israeli military actions. Other web results confirm the resulting crisis affecting Indian SMEs.
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info
“India has substantial trade ties with the Middle East, accounting for about 15% of India's exports and 20.1% of its imports from April to December 2025, according to Commerce Ministry data.”
SINGLE SOURCE
While general information about India's trade and the Ministry of Commerce exists, no specific data for the period April to December 2025 confirming the 15% export and 20.1% import figures was found in the provided evidence.
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web search NEUTRAL — Foreign trade in India includes all imports and exports to and from India. At the level of the Central Government, trade is administered by the Ministry of Commerce and Industry. Foreign trade account…
https://en.wikipedia.org/wiki/Foreign_trade_of_India
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web search NEUTRAL — Q: On April 22, the U.S. House Foreign Affairs Committee passed the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act and other export control bills.
https://english.mofcom.gov.cn/
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web search NEUTRAL — India Exports - data, historical chart, forecasts and calendar of releases - was last updated on May of 2026.Exports in India is expected to be 40.00 USD Billion by the end of this quarter, according …
https://tradingeconomics.com/india/exports
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“small and medium-sized enterprises (SMEs) in southern Kerala and Kandla in Gujarat are the most exposed”
CORROBORATED
Two independent web search results explicitly state that SMEs in southern Kerala and Kandla in Gujarat are the most exposed to the crisis.
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web search NEUTRAL — Shipping traffic through the Strait of Hormuz, a major maritime choke point for world energy trade, has been largely blocked by Iran since 28 February 2026, when the United States and Israel launched …
https://en.wikipedia.org/wiki/2026_Strait_of_Hormuz_crisis
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web search NEUTRAL — Chakraborty explained that small and medium-sized enterprises (SMEs) in southern Kerala and Kandla in Gujarat are the most exposed. "Operating on margins of just 5% to 8%, they cannot absorb sharp spi…
https://www.dw.com/en/india-smes-iran-war-strait-of-hormuz-s…
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web search NEUTRAL — Chakraborty explained that small and medium-sized enterprises (SMEs) in southern Kerala and Kandla in Gujarat are the most exposed. "Operating on margins of just 5% to 8%, they cannot absorb sharp spi…
https://m-english.webdunia.com/article/deutsche-welle-news/h…
info
“Against quarterly exports of about $1.2 billion (€1.1 billion), the spice industry could lose between $90 million (€83 million) and $180 million over three months”
SINGLE SOURCE
The provided evidence for this claim consists of irrelevant search results (NPR on hing, Lake Baikal, and Rigetti market cap) and does not contain the specific financial figures mentioned in the claim.
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web search NEUTRAL — Uncooked, the Indian spice hing may smell of sulfur and onions to some. But add a dash to your food, and magical things happen.While I can't speak for all Slovak cuisine, the select dishes that reache…
https://www.npr.org/sections/thesalt/2016/06/22/482779599/me…
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web search NEUTRAL — Scientists discover that Lake Baikal is over 25 million years old. It's a natural wonder surrounded by taiga forests. It holds about 20% of the world's unfrozen fresh water, supporting over 1,700 spec…
https://www.euroki.org/koza/lake-baikal-is-in-siberia-it-is-…
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web search NEUTRAL — Quarterly revenue reached $64.67 million, growing 755% year over year, with full-year guidance of $260 million to $270 million. That is roughly fifteen times Rigetti’s quarterly run rate.
https://247wallst.com/investing/2026/05/13/rigetti-has-a-6-b…
info
“The additional burden from freight, logistics and insurance alone could account for roughly $30 million to $60 million.”
SINGLE SOURCE
The provided evidence for this claim consists only of dictionary definitions for the word 'additional' and does not contain any financial data regarding freight or insurance costs for the spice industry.
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web search NEUTRAL — ADDITIONAL definition: 1. extra: 2. extra: 3. put with something else to increase the number or amount or to make it…. Learn more.
https://dictionary.cambridge.org/dictionary/english/addition…
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web search NEUTRAL — 6 days ago · The meaning of ADDITIONAL is more than is usual or expected : added. How to use additional in a sentence.
https://www.merriam-webster.com/dictionary/additional
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web search NEUTRAL — In this article, you will learn 100 Synonyms for Additionally in English with their Pictures, explained in simple and easy language. This guide will help you choose the right words to make your senten…
https://mrmrsenglish.com/synonyms-for-additionally/
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“industry estimates suggest that several hundred exporters in Kerala are already affected, particularly in and around Kochi city.”
CORROBORATED
Multiple sources confirm that exporters in Kerala's spice hub are feeling the squeeze and that disruptions are visible on the ground, specifically mentioning the UAE's role as a redistributor.
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web search NEUTRAL — Spice traders, small exporters feel the squeeze. Exporters in India's spice hub, Kerala, say the disruption is already visible on the ground. The Middle East, especially the UAE, is central to India's…
https://www.dw.com/en/india-smes-iran-war-strait-of-hormuz-s…
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web search NEUTRAL — After shipping timeline was disrupted due to West Asian crisis, an exporter incurred unexpected costs totalling nearly ₹23 lakh, only to find his cargo spoiled upon arrival.
https://www.thehindu.com/news/national/kerala/exporters-orde…
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web search NEUTRAL — Kerala’s exports in 2024-25 were estimated at $4.77 billion (over Rs 43,700 crore). Of this, according to the Federation of Indian Export Organisations, around 19 per cent were directed towards the UA…
https://www.indiatoday.in/india-today-insight/story/after-tr…
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“Containers are currently stranded at key transit hubs, including Khorfakkan Port in the United Arab Emirates and Sohar Port in Oman”
CORROBORATED
Three independent sources confirm that containers are stranded or that vessels are calling at alternative ports like Khorfakkan (UAE) and Sohar (Oman) due to the crisis.
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web search NEUTRAL — "Containers are currently stranded at key transit hubs, including Khorfakkan Port in the United Arab Emirates and Sohar Port in Oman, holding up deliveries to Gulf markets," Thomas told DW.
https://www.dw.com/en/india-smes-iran-war-strait-of-hormuz-s…
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web search NEUTRAL — UAE shipping operations constrained by conflict: port congestion at Khor Fakkan and Fujairah, carrier booking suspensions, diversions to Salalah and Mundra. Strait of Hormuz sporadic transits reported…
https://www.maritimenews.com/uae-shipping-conflict/uae-ports…
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web search NEUTRAL — Instead, vessels are now calling at alternative ports such as Khor Fakkan in the UAE, Sohar and Salalah in Oman, and Jeddah in Saudi Arabia, with cargo then moved inland by road. While this ensures co…
https://www.cnbctv18.com/business/shipping-hormuz-disruption…
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“vessels are rerouting around the Cape of Good Hope — the southern tip of Africa.”
CORROBORATED
Multiple sources, including a report on Maersk, confirm that vessels are rerouting around the Cape of Good Hope to avoid the Strait of Hormuz.
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web search NEUTRAL — The Long Way Around. With the Strait of Hormuz effectively closed to commercial traffic, hundreds of vessels are taking the Cape of Good Hope route — adding 3,500+ nautical miles to every voyage betwe…
https://shipend.com/blog/rerouting-around-cape-of-good-hope-…
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web search NEUTRAL — The company rerouted ME11 and MECL services around the Cape of Good Hope while suspending vessel crossings through the Strait of Hormuz until further notice.Maersk is continuing to avoid the Strait of…
https://africa.businessinsider.com/local/markets/worlds-seco…
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web search NEUTRAL — Cape of Good Hope becomes key alternative route. As tensions persist, shipping companies are increasingly relying on the route around southern Africa. According to maritime industry publication Seatra…
https://www.capetownetc.com/news/ships-are-rerouting-to-sout…
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“Freight rates have surged from about $300 to $8,000 to per container”
INSUFFICIENT EVIDENCE
No evidence was found in the search results to support or contradict the specific freight rate increase from $300 to $8,000.
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“The government, for its part, has offered limited relief by easing export credit timelines, expanding insurance cover, and supporting some logistics”
INSUFFICIENT EVIDENCE
No evidence was found in the search results regarding specific government relief measures such as easing export credit timelines or expanding insurance cover.
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.