SEA freight rates have fallen 15 per cent, while the Federation of Indian Export Organisations (FIEO) recorded India's merchandise exports in the current fiscal year 14 per cent higher than the previous financial year at US$475 billion, reports New Delhi's Times of India.
In FY22, India's merchandise exports rose 43 per cent over FY21 to $418 billion.
Still, the volume growth in exports in the ongoing fiscal year may not be significant since the global inventory is high and key rates in world markets are rising.
'In FY22, global markets created an inventory as commodity prices went up. Exports had gathered momentum after the second Covid-19 wave, but now due to inflationary pressure the volume growth of exports will be less,' said FIEO director-general Ajay Sahai.
'As things stand today, India's merchandise exports in FY23 may not cross $475 billion.'
Meanwhile, the Chinese economy is opening up after four months of Covid crisis lockdowns. As a result, Indian exporters will face more competition from China in the global markets.
Said Engineering Exports India chairman Mahesh Desai: 'Container availability has improved, and the freight cost has gone down by 10 per cent to 15 per cent. We have to see how long this situation continues.'
SeaNews Turkey
In FY22, India's merchandise exports rose 43 per cent over FY21 to $418 billion.
Still, the volume growth in exports in the ongoing fiscal year may not be significant since the global inventory is high and key rates in world markets are rising.
'In FY22, global markets created an inventory as commodity prices went up. Exports had gathered momentum after the second Covid-19 wave, but now due to inflationary pressure the volume growth of exports will be less,' said FIEO director-general Ajay Sahai.
'As things stand today, India's merchandise exports in FY23 may not cross $475 billion.'
Meanwhile, the Chinese economy is opening up after four months of Covid crisis lockdowns. As a result, Indian exporters will face more competition from China in the global markets.
Said Engineering Exports India chairman Mahesh Desai: 'Container availability has improved, and the freight cost has gone down by 10 per cent to 15 per cent. We have to see how long this situation continues.'
SeaNews Turkey
