Unsettled world could hurt India’s exports, FIEO warns

The Federation of Indian Export Organisations (FIEO) has raised concerns over the escalating geopolitical tension, indicating potential implications for India’s exports in the first quarter of 2024-25.

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According to FIEO Director General Ajay Sahai, the ongoing war between Russia and Ukraine has already affected India’s outbound shipments in 2023-24, resulting in a decline of 3.11 per cent to USD 437 billion. Imports also experienced a significant dip of over 8 per cent to USD 677.24 billion during the same period.

Sahai highlighted that if the current global uncertainties persist, they are likely to impact global demand, potentially leading to a slowdown visible in the first quarter numbers. He noted that despite ongoing challenges, freight rates are softening, signalling potential future impacts on demand. Sahai further cautioned that further escalation of the current geopolitical situation could have serious implications for world trade.