Indian IT distributor Redington has sharply increased air freight deliveries to the Middle East after conflict disrupted sea routes and closed the Strait of Hormuz, squeezing capacity and driving up rates. The company says air has replaced much of its former sea share since late February, with higher fuel costs contributing. Redington also redistributed inventory, rerouted logistics via Saudi Arabia and Oman, and arranged alternative insurance after insurers withdrew war-risk coverage. Despite demand dips in UAE and Saudi Arabia, it expects 10% to 15% revenue growth in FY2027.
India’s FMCG sector is facing a fresh setback as the Gulf conflict raises crude-linked costs for packaging, transport and fuel. Worldpanel by Numerator has cut its 2026 growth forecast to 3% from 5% if the war continues past June and monsoon rains stay weak. While March-quarter volumes rose 5.4%—the strongest in two years—companies are already raising prices 2-5% or shrinking pack sizes, with rural and discretionary demand at risk as consumers trade down.
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Foreign portfolio investors bought fewer Indian securities in FY26, with outflows increasing as tensions in West Asia escalated. Economists expect muted flows in FY27, citing the ongoing Gulf conflict, a weaker rupee, and worries about government finances. A major catalyst such as bond index inclusion may be needed to restart stronger inflows.
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