The Shipping Corporation of India (SCI) may deploy container ships to West Asia to help Indian exporters manage high freight costs, according to government indications to exporters. Commerce and industry minister Piyush Goyal conveyed this plan during a meeting with export promotion councils on Monday evening, as reported by The Times of India. The initiative comes in response to complaints over high input and freight costs that have been impacting export competitiveness. Latest developments show SCI is now seeking a $360 million bid for six methanol ships as part of its expanded West Asia deployment strategy.
Freight and input cost concerns, along with container ship availability due to West Asia conflict, emerged as the two most prominent issues shared at the meeting. According to The Times of India, oil prices, petrochemicals, chemicals, plastics and cotton were flagged as segments where government intervention was sought. The textiles bodies specifically demanded zero duty import of cotton, citing high market prices, while an exporter alleged that Cotton Corporation of India liquidated stocks that were picked up by players who jacked up prices.
The leather industry also sought concessions related to polyurethane, while suggestions were made to streamline relief measures announced by the government. As reported by The Times of India, the commerce department has already announced wider insurance coverage for goods headed to West Asia, while the revenue department has eased norms for SEZ units selling in the domestic market. Exporters also raised issues related to compliance costs, testing requirements and challenges faced by MSMEs in entering export markets.
Minister Goyal urged exporters and industry bodies to fully leverage India's trade agreements with developed economies to expand market access and create employment opportunities. According to The Times of India, against goods exports of $860 billion, the minister said this should act as a springboard to achieve $2 trillion exports by 2030. Goyal also announced a three-year waiver of application fee for intellectual property rights related to the sports sector.
