India actively seeks solutions to mitigate the impact of the Red Sea crisis on exports

The Red Sea crisis has caused a decrease in Indian exports to the US, Europe, and the Mediterranean region, and is expected to further complicate trade in the coming months. Indian garment exports have seen a 15% year-over-year decline in November, exacerbating the 8% drop in October. The crisis is likely to increase demand pressure, necessitating the development of new strategies to boost export volumes, with potential growth opportunities in markets like Latin America and Australia, but with slow incremental growth expected.

Mithileshwar Thakur, secretary general at Apparel Export Promotion Council (AEPC), emphasized the need for India to capitalize on its strengths and advantages to capture new export opportunities. Naren Goenka, chairman of AEPC, expressed concerns over rising shipping costs resulting from the Red Sea crisis, as well as potential delays in delivery schedules and increased logistics costs. The AEPC has unveiled plans to increase Indian apparel exports by value from US $16-17 billion to US $40 billion by 2030, in line with trade diversification trends in Asia.

The Red Sea crisis has already affected Indian exports, and it is expected to create further trade difficulties in the near future, particularly in the garment sector. Indian garment exports have declined by 15% year-over-year in November, following an 8% drop in October. The crisis is expected to exacerbate demand pressure, necessitating the development of new export strategies and potential growth opportunities in markets such as Latin America and Australia. AEPC officials have emphasized the need for India to capitalize on its strengths and advantages while expressing concerns over rising shipping costs and potential delays in delivery schedules, as well as increased logistics costs. The council has unveiled plans to significantly increase Indian apparel exports by value by 2030, in line with trade diversification trends in Asia.

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