Union Minister Piyush Goyal
| Photo Credit:
ANI
Speaking at a business leaders awards event by CNBC TV18, Goyal said the Commerce Ministry has worked out certain schemes which will help create an insurance cover should any export cargo be damaged or lost or even inordinately delayed because of the Red Sea problem or the Strait of Hormuz problem or shipping line difficulties.
“We are working on a scheme on that. We are doing the inter-ministerial consultation. Next week we will be coming out with some more concrete action agenda to support the exporters,” he added.
He acknowledged the war had created challenges for trade, energy supplies and financial markets, and there could be some short-term slowdown in economic activity. “My own sense is that there will be a certain shortfall in economic activity in the short run. But we’ll make up for that in the months to come,” he said.
Addressing concerns about the weakening rupee, Goyal said the pressure largely reflected global investor risk aversion during periods of conflict. He pointed to strong foreign exchange reserves held by the Reserve Bank of India, equivalent to nearly a year of imports, as a key buffer. “I don’t see any reason for anybody to panic. The rupee will bounce back in a gradual fashion once the war is over,” he said.
The government was already engaging with export promotion councils, setting up 24-hour helplines to resolve issues and establishing standard operating procedures to “to help any cargo which needs to come back, to see how we can have custom support or port support to ensure exporters don’t face any problem, or importers for that matter.”
On the energy front, Goyal said India had adequate crude and fuel stocks and had diversified sourcing of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) to offset supply disruptions from the Middle East. While shipping times may increase as supplies come from more distant locations such as the US, Canada and Russia, he stressed that the issue was one of timing rather than availability.
He pointed out that kerosene production has been ramped up as an alternative in the event of LPG supply delays.
FTAs
Despite the global uncertainty, Goyal said India would continue expanding its trade engagement through free trade agreements with major economies and regional blocs, positioning the country as a trusted partner in global supply chains.
Apart from the nine FTAs already signed, six new FTAs were in the works, including with Israel, Gulf Cooperation Council, Chile and Peru. Talks were on with Mexico and South African Customs Union. Renegotiations of existing FTAs with South Korea and ASEAN were on, he added.
Published on March 14, 2026