Commerce & Industry Minister Piyush Goyal
| Photo Credit:
ANI
“I can assure you that this government stands with our industry and will continue to ensure that all our international commitments are met…And the government will use every policy tool and the export promotion mission to support our exporters…,” said Goyal on the sidelines of IIFT Vice Chancellors’ conclave on Friday.
‘Trusted partner’
The Minister pointed out that even during the Covid pandemic, India met all its international commitments, which earned the nation the acronym of “trusted partner”.
The Commerce Ministry is in dialogue with the Ministry of Shipping and with shipping companies on the issues that concern exporters, said Goyal. With major shipping lines suspending transit through the Strait of Hormuz and the Suez Canal, Indian trade is hit by rising freight and insurance costs. “I do hope we will find a resolution to this issue also,” he said.
The inter-ministerial group for supply chain resilience, formed to tackle problems arising from the emerging geopolitical situation, talks to exporters every day, said the Minister. “They take feedback, and we will not be found wanting in supporting our exporters in any way,” he said.
Industry bodies have sought urgent intervention from the government to prevent a liquidity crunch. Exporters are urging for higher RoDTEP (Remission of Duties and Taxes on Exported Products) rates, and have called on the ECGC to freeze insurance premiums despite the heightened risk.
The industry is seeking ad-hoc working-capital limits and credit extensions to manage the capital locked up in stranded shipments. There are also demands for the government to waive port-related charges, such as storage and demurrage, particularly in cases where the cargo is rolled due to sudden vessel cancellations.
Exporters are also grappling with a severe shortage of containers and the frequent suspension of vessel calls to hubs in West Asia.
The Gulf region is highly important for India’s trade. GCC countries accounted for roughly 13 per cent of India’s total exports in FY25 at $56.86 billion, with exports to the UAE alone at over $36 billion. If the uncertainty prolongs, these volumes may face a temporary contraction. India’s direct exports to Iran, however, remained modest at $1.4 billion in FY25, comprising primarily humanitarian, non-sanctioned items such as basmati rice, tea and pharmaceuticals.
Published on March 6, 2026