look news india
Mumbai: On one hand, India is trying to reduce trade deficit by increasing exports, while on the other hand, there is a possibility of impact on India's exports as a result of Iran-Israel tension. There are concerns now that some exports, especially engineering goods, tea, basmati rice, will be affected.
Due to the shortage, transportation of goods by air is expected to become costlier by 10 to 12 percent, not only this but the cost of logistics and insurance will also increase. Sources in the Federation of Indian Exporters Organization (FOI) said India's engineering goods exports to Europe may face challenges.
Due to the Red Sea crisis, Indian exporters are exporting their goods to Europe by air instead of sea. This has increased air cargo costs.
Sources said that due to tensions, flights over Iran are currently being diverted, which will also increase the time taken for goods to arrive.
Shipping costs have increased by 50 to 60 percent in recent times as ships have also changed their routes, making it difficult for Indian exporters to remain competitive.
India's engineering exports to European markets will be affected. Meanwhile, since Iran is a big buyer of Indian tea, there is a possibility of a big impact on India's tea exports. Apart from this, there is also concern about decrease in export of Basmati to Iran.
Indian tea exporters who were expecting an increase in their trade with Iran this year, have now had their hopes dashed.