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Federation of Indian Export Organisations Warns 7–8% Drop in India Exports Amid West Asia Crisis
Energy Crisis: FIEO President said the conflict has exacerbated the crisis, leading to increases in freight and insurance costs.
As a result of global economic uncertainties due to the situation in West Asia, India’s commodity exports may decline by 7-8% in March. For 2025-26, a 2-3% decline is anticipated. India’s government will publish March exports data on April 15.
Federation of Indian Export Organisations (FIEO) President SC Ralhan said the joint attack by the US and Israel on Iran on February 28th has severely impacted India's exports to West Asia. This has led to increased freight, air transport costs, and insurance costs. He added that disruptions to oil and gas shipments from West Asian countries have also led to increased prices of raw materials such as steel, plastic, and rubber. Ralhan said, "India's total exports, including goods and services, are expected to grow by five to six percent."
Amid the current crisis, the FIEO president suggested that the government should focus on simplifying payments under the high-interest-rate Advance Authorization (ADV), or duty rebate scheme. Furthermore, harmonization of nomenclature, classification, and coding systems between the Directorate General of Foreign Trade and Customs should also be addressed.
