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Rupee depreciation, Global Trade policy issues for India discussed by FIEO

The Federation of Indian Export Organisations outlines Issues and Challenges in International Trade focusing on India's exports.

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The Federation of Indian Export Organisations (FIEO) held a press conference on Wednesday on "Issues and Challenges in International Trade" focusing on India's Exports and its Future Prospects in New Delhi.
 
The apex body of exporters highlighted the key issues discussed in the presser- Global Trade Scenario and Indian Exports, Rupee depreciation, Liquidity and interest rates, Indian Rupee Trade Mechanism, GSP loss in EU particularly, Services, E-Commerce and  Foreign Trade Policy.
 
Issues and challenges in international trade relating to exports from India:
 
FIEO stated, "Global trade is facing headwinds more so now that the Russia-Ukraine war had such a significant impact on global crude and food prices," when discussing the Global Trade Scenario and Indian Exports. This will affect India’s exports in two ways:
  1. Since input prices have decreased, the value of raw material exports will decrease, and,
  2. The value of the finished product made from those raw materials will also decrease.
FIEO mentioned in a statement that the demand has increased as buyers are delaying the payments and asking exporters to withhold further shipments or release in small quantities. "There is a need to extend further credit to the export sector by automatically enhancing the limits by 20% or so as given under the Gold Card scheme, at least to the established exporters", the export body added.
 
The apex body said in regards to issues concerning exports to Iran and Russia that  "A related issue is the logistics for exports to Russia. We are very happy that the Government is considering using the INSTC route to reach Russia. The route reduces the voyage time and the cost. Unfortunately, the Indian banks are reluctant to negotiate any document when goods touch Iran, being a sanctioned country. Therefore, some clear instructions need to be given to the banks to negotiate the documents for goods routed through Iran with ultimate destination as Russia or CIS which is clearly available in the combined transport bill of lading."

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