The government will announce a clutch of measures later this week to support exports, particularly to West Asia, which has been disrupted by the conflict in the region, Commerce Secretary Rajesh Agrawal said Monday.
Along with the support measures for exporters, the government is also working with the countries of the region to address logistics challenges, as they also depend on India for multiple product categories, he added.
Logistical challenges
Logistical challenges are being faced regarding the movement of ships and even air cargo is facing certain challenges due to disruptions in flights and the movement of air freighters in that region. The region takes in $ 58.8 billion worth of Indian goods each financial year. Cereals, fish, meat, dairy, coffee, tea, fruits and vegetables are major Indian exports to the region.
The conflict has led to shipping companies avoiding sending vessels through the region. Many ships remain stranded and those going to Europe and the US have taken detours through the Cape of Good Hope. Congestion and longer journeys have even impacted schedules on other routes.
Earlier, an official had said that support measures for exporters could include help on the insurance front.
Inter-Ministerial meetings
In the meantime the Inter-Ministerial Group under the Director General of Foreign Trade (DGFT) meets daily to take feedback from the ground on the export-import situation and ensure that whatever challenges can be resolved through the Ministry of Shipping and Ports and the Central Board of Indirect Taxes and Customs (CBIC) are addressed.
Already some steps have been taken like the export obligation time period under the Export Promotion Capital Goods Scheme and Advance Authorisation have been extended by four more months to till August 20.
CBIC has brought in certain regulations to ensure the return of cargo stuck at sea back to India. Some port charges have been waived as cargo clearance is taking longer.