Export-Import Bank of India (Exim Bank) is the leading financial institution engaged in financing, facilitating & promoting India’s International trade and investment. David Sinate, chief general manager, Research & Analysis, India Exim Bank, spoke to The Indian Express about the problems Indian exporters are likely to face this season. Excerpts from an interview.
Would global supply chain constraints, especially the logistic price rise and non-availability of containers be a dampener to India’s export growth story? If yes, which commodities would be hit more?
International transportation of goods, especially through ships remains a major challenge to export growth. While global trade in goods surged past pre-pandemic levels, the availability of ships and containers fell due to pandemic-related interruptions, creating an imbalance. This has resulted in a dramatic rise in shipping rates. This is a global phenomenon. The container shortage is also leading to congestion and increased processing time at various Indian ports. Over the medium term, the shortage of containers, frequent shutouts by the shipping lines and exorbitant freight rates are expected to challenge the rise in exports.
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