Logistics disruptions impacted export growth in June: FIEO
Logistics disruptions such as lack of container availability, irregular shipping schedule and ships skipping Indian ports impacted the country's exports growth during June, apex exporters' body FIEO said on Monday. After recording 12.8 per cent growth in May, India's merchandise exports rose by just 2.56 per cent to USD 35.2 billion in June.
Federation of Indian Export Organisations (FIEO) President Ashwani Kumar said the third consecutive increase in merchandise exports shows the resilience of the sector.
«Had it not been for the logistics disruptions such as lack of container availability, shipping space, irregular shipping schedule and ships skipping Indian ports, the exports would have recorded close to double-digit growth in June 2024,» he said in a statement.
The officials of Ministry of Commerce, however, denied any shortage of containers.
Kumar further said the need of the hour is to take steps on the liquidity front with deeper interest subvention support and extension of interest equalisation scheme for five years.
«Besides addressing the Middle East geopolitical situation, Red Sea challenges by ensuring availability of containers, marine insurance and rationale increase in freight charges, the sector also needs easy and low cost of credit, and marketing support,» he added.
