Indian exporters find opportunity in geopolitical challenges
Amid geopolitical tensions in the Middle East, Indian exporters are finding opportunities to adapt and thrive.
Despite challenges like increased shipping costs and longer transit times, the sector's resilience, supported by government mechanisms, allows exploration of alternate routes and markets.
India's diversified energy strategy and proactive policies ensure stability, positioning it as a reliable trade partner.
New Delhi [India], June 23 (ANI) India's export sector remains "resilient and adaptive" at a time geopolitical tensions in the Middle East, including the ongoing Iran-Israel conflict, pose certain challenges to global trade dynamics, President of Federation of Indian Export Organisations (FIEO) SC Ralhan said. "Our trade with both Iran and Israel, while important, constitutes a small share of our overall export-import basket. The government and industry are jointly monitoring developments to ensure minimal disruption," the exporters' body chief said.
FIEO said it anticipates some short-term impact on demand and logistics, particularly in the Gulf region, which serves as a crucial hub for Indian exports. "Increased shipping costs, longer transit times, and rising marine insurance premiums may add pressure, especially in price-sensitive sectors," he added. However, he noted that Indian exporters have repeatedly demonstrated agility in rerouting shipments, diversifying markets, and managing financial exposures.
"The robust MSME and large-scale exporters, coupled with strong government support mechanisms, will help cushion any near-term shocks," he noted. Crude oil price volatility is being closely watched, as it can influence inflation and logistics costs. However, India's diversified energy procurement strategy and the Reserve Bank's proactive stance help maintain liquidity and macroeconomic stability.
Over the years, India has diversified its energy supplies, and a large volume of them do not come through the Strait of Hormuz now. Oil Marketing Companies have supplies for several weeks and continue to receive energy supplies from several routes. Petroleum Minister Hardeep Puri vowed his ministry will take all necessary steps to ensure the stability of fuel supplies to citizens.
"Overall, while there are temporary headwinds, we see this as an opportunity for Indian exporters to explore alternate routes, strengthen regional partnerships, and consolidate India's role as a reliable trade partner in uncertain times," the FIEO President said. The FIEO said it is committed to supporting exporters with timely guidance, market intelligence, and policy advocacy to ensure continued momentum in the global trade journey. (ANI)