As news of a second lockdown in the key European markets emerge, India reported a 5.4% dip in last month’s export data. The country exported goods worth US$ 24.82 billion last month, as against US$ 26.23b in October 2019.
The pandemic with additional issues such as container shortage due to imbalance in trade is further adding to the problems of the exporters. To improve the conditions Piyush Goyal, Commerce and Industry requested Minister of State for Transport and Highways Nitin Gadkari to invite non-cartel shipping lines and also to provide preferential berthing to cartelized lines with berths, thus leading to a 4060% increase in the freight.
Additionally, the commerce ministry may limit benefits for exporters under the new Remission of Duties or Taxes on Export Products (RoDTEP) scheme. The rates will be finalized on a priority basis for select sectors due to resource constraints.