Logistics Challenges Hinder India's Export Growth in June

India's export growth in June was hindered by logistics disruptions like container shortages, irregular shipping schedules, and port skipping. Despite these challenges, merchandise exports rose by 2.56%, showing resilience. To further support exports, steps need to be taken on liquidity fronts, deeper interest subventions, and logistics improvements.

India's export growth faced significant hurdles in June due to logistics disruptions, including a lack of container availability, irregular shipping schedules, and ships bypassing Indian ports, according to the Federation of Indian Export Organisations (FIEO).

Despite these challenges, merchandise exports increased by 2.56%, reaching USD 35.2 billion, following a 12.8% growth in May. FIEO President Ashwani Kumar emphasized the resilience displayed by the sector amidst ongoing issues.

Kumar noted that without these logistics disruptions, exports could have nearly reached double-digit growth. He underscored the need for immediate steps to address liquidity by enhancing interest subvention support, extending the interest equalisation scheme, and improving logistics services, such as container availability and marine insurance.