The Indian government has indicated to exporters that the Shipping Corporation of India (SCI) may operate container ships to West Asia to help alleviate the issue of high freight costs. This was conveyed by Commerce and Industry Minister Piyush Goyal during a meeting with export promotion councils on Monday evening, according to an industry representative present.
Key Concerns Addressed
Freight costs and input costs, along with the availability of container ships due to the West Asia conflict, were the primary concerns raised. Sectors such as oil, petrochemicals, chemicals, plastics, and cotton were flagged for government intervention. Textile bodies have demanded zero-duty import of cotton, citing high market prices. An exporter alleged that the Cotton Corporation of India liquidated stocks that were bought by a few players, who then inflated prices.
Relief Measures and Suggestions
The leather industry has sought concessions related to polyurethane. Suggestions were made to streamline existing relief measures. The commerce department has already announced wider insurance coverage for goods destined for West Asia, while the revenue department has eased norms for SEZ units selling in the domestic market. Exporters also raised issues regarding compliance costs, testing requirements, and challenges faced by MSMEs in entering export markets.
Government's Assurance
Minister Goyal assured full government support and urged exporters to leverage India's trade agreements with developed economies to expand market access, boost exports, and create employment opportunities. He emphasized that timely utilization of these agreements is critical. With goods exports at $860 billion, he stated that this should serve as a springboard to achieve $2 trillion in exports by 2030.
IP Fee Waiver for Sports Sector
Goyal also announced a three-year waiver of application fees for intellectual property rights, including patents, trademarks, and designs, related to the sports sector.
