Will formalise ways to give comfort to Indian exporters, says Piyush Goyal

Piyush Goyal says the government is formalising steps to support exporters facing disruptions from the West Asia crisis, with an inter-ministerial group tracking risks and logistics challenges

The government will formalise ways to give “comfort” to Indian exporters grappling with the ongoing crisis in West Asia, Commerce and Industry Minister Piyush Goyal said on Friday.

 

“I gave instructions over the past two days,” the minister told reporters at the sidelines of the vice-chancellors’ conclave organised by the Indian Institute of Foreign Trade. 

“We have set up a helpdesk. Everyday an inter-ministerial group talks to exporters. They take feedback. We should continue to meet all the commitments made to buyers, whether in goods or services. The government will use every policy tool and export promotion mission to support exporters,” Goyal said. 

 

The ministry on Tuesday put into operation an inter-ministerial group for “supply chain resilience” to monitor the escalating conflict in West Asia, assess sector-wise export and “critical import” vulnerabilities, and recommend mitigation measures where required. The committee -- comprising officials of the ministries of finance, external affairs, shipping, and petroleum -- is expected to ensure coordination among departments and engage with export promotion councils. Additionally, an internal coordination mechanism has been established within the Directorate General of Foreign Trade (DGFT) to enable real-time tracking of challenges due to the ongoing crisis. 

Exporters have been seeking government intervention to help them deal with disruption in shipments after the United States (US) and Israel attacked Iran. 

 

Exporters have been warning of a crisis as cargo bound for West Asia piled up at domestic ports, apart from the logistics-related challenges. Some shipping lines are demanding high war-risk surcharges, while others are stranded in the international waters. They are also facing a shortage of containers, suspension or cancellation of vessel calls to West Asia, and sharply higher logistics costs.

 

“We are in dialogue with the shipping ministry and with all the shipping companies,” Goyal said, adding that the government departments and ministries would find a solution on the stuck cargos.