India to Take Measures This Week to Aid Exporters Affected by West Asia Disruptions

India to Announce Support Measures for Exporters Amid West Asia Disruptions

The Indian government is developing a package of measures to aid exporters facing trade disruptions in West Asia, with details expected to be announced within the week. Commerce Secretary Rajesh Agrawal stated that India's exports to the region may be impacted, but imports from the same markets are also likely to be affected.

Logistical Challenges: India's exports to West Asia are facing logistical challenges, particularly in the movement of ships, and air cargoes are also experiencing issues. To address these concerns, the government has set up an inter-ministerial group under the Directorate General of Foreign Trade (DGFT) to monitor the situation and gather feedback from exporters.

Inter-Ministerial Group: The group, which meets daily at 10 a.m., is working to resolve issues faced by exporters sending goods to the affected region. Agrawal stated that the group assesses challenges and finds solutions to reduce the impact on exporters.

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Export Growth: Despite potential disruptions, Agrawal expects merchandise exports to still grow this fiscal year. However, he acknowledged that the disruptions may weigh on India's full potential. India's goods and services exports are expected to reach $860 billion this fiscal year, with merchandise shipments likely to remain in positive growth territory compared to the previous year.

Performance: India's merchandise exports stood at $402.93 billion in the first 11 months of the current fiscal year, higher than $395.66 billion in the same period last fiscal year. Overall outbound shipments, including services, were at $790.9 billion, up from $747.6 billion a year earlier.