Exporters have raised concerns over uncertainty in orders, higher logistics costs, liquidity constraints and possible disruptions to raw material supply chains due to the prolonged crisis in West Asia, which has also impacted the Bab el-Mandeb shipping route, according to Times of India report.
The issue came up briefly during a meeting between Commerce and Industry Minister Piyush Goyal and export promotion bodies on Wednesday. Exporters said uncertainty over shipping schedules has delayed execution of orders, while overseas buyers have adopted a cautious approach, with some seeking extensions in delivery timelines and others postponing fresh purchase decisions.
Trade bodies, including the Federation of Indian Export Organisations (FIEO), have sought a fresh set of measures to help businesses cope with the situation, an industry representative present at the meeting said.
Another executive said Goyal received feedback on the evolving situation. During the meeting, the minister is learnt to have backed further support for service exporters, particularly those in the hospitality and medical tourism sectors, a person familiar with the deliberations said.
Speaking later at the JRD Tata Memorial Lecture organised by industry body Assocham, Goyal said the India growth story had remained resilient despite global uncertainties.
"In the first quarter of FY27, war continues. Petrol, crude, gas, diesel, all have all faced uncertainty. Hormuz has been opening and closing through this period. Now we have the Red Sea crisis; it is only expanding. Despite that, as I speak to you today, our merchandise exports have grown by 15% so far in the current fiscal," he said.
Goyal also said the trust deficit between businesses and the government had persisted despite several reforms over the years and asserted that the Centre was working to "truly address" the issue, particularly by improving ease of doing business and reducing the compliance burden.
(With TOI inputs)
