Govt to use all tools to support exporters amid West Asia crisis: Piyush Goyal

New Delhi: The government will use all policy tools and announce relief measures to help exporters cope with disruptions caused by the West Asia crisis, commerce and industry minister Piyush Goyal said on Friday.

Goyal said the government has formed an inter-ministerial group to address these issues on a daily basis. He also affirmed that India would continue to fulfill commitments made by the country's industries to foreign buyers regarding goods and services.

"I have already given instructions over the last two days...The government will use every policy tool and the export promotion mission to support our exporters... We will be formalising some ways to give comfort to our exporters," Goyal said on the sidelines of IIFT's vice chancellors' conclave.


India has established a multi-ministry support desk to assist exporters and importers in addressing trade disruptions caused by tensions in West Asia, which is India's third-largest export destination after the US and the EU, and also a crucial transshipment region. "Every day the inter-ministerial group talks to the exporters... They take feedback, and we will not be found wanting in supporting our exporters in any way," Goyal said, adding that the commerce and industry ministry is in dialogue with the ministry of shipping and with shipping companies on the problems exporters are facing.

Exporters have raised issues related to routing and transit-time changes, vessel scheduling adjustments, container/equipment availability, freight and insurance cost trends, and implications for time-sensitive exports.

Shipping lines have diverted vessels via the Cape of Good Hope, which could add an estimated 15-20 days to transit time for shipments to Europe and the US. They are also imposing high emergency surcharges. Although Iran says that its forces are attacking only US, Israeli and European vessels, Indian exporters and shipping lines have turned cautious. They have raised surcharges and are also cancelling trips.

On the issue of increasing freight, Goyal said the ministry is working with them to see how the burden of exporters can be supported with.