Logistics disruptions such as irregular shipping schedules, lack of container availability, and ships skipping Indian ports impacted the country’s export growth during June, according to a statement from the Federation of Indian Export Organisations on Monday.
India’s merchandise exports rose by 2.56% to $35.2 billion in June despite recording 12.8% growth in May.
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 the 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 an extension of the interest equalisation scheme for five years.
He added that in addition to addressing the Middle East geopolitical situation and the Red Sea challenges, ensuring availability of containers, marine insurance and rational increase in freight charges, the sector also needed easy and low cost of credit, as well as marketing support.