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Time of India
5 days ago
- Business
- Time of India
Trade pacts, Red Sea route resumption to aid India's FY26 exports to $1 trn: FIEO
India anticipates its goods and services exports to hit $1 trillion by fiscal year 2026. This growth is supported by new trade agreements and the resumption of shipments via the Red Sea route. Federation of Indian Export Organisations projects increases in merchandise and service exports. Key sectors driving this growth include electronics, agriculture, and petroleum products. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: India's overall goods and services exports are expected to reach $1 trillion in FY26 aided by more trade agreements with key trade partners coming into force amid Indian export consignments having gradually started moving through the Red Sea route again, Federation of Indian Export Organisations ( FIEO ) said 2024-25, India's exports were $825 billion. FIEO President S C Ralhan said that merchandise exports will increase to $525-535 billion this fiscal from $437 billion, led by electronics, agriculture and petroleum products while services exports are seen rising to $465-475 billion from $387 factor will be the foreign buyers particularly in the US looking beyond China to source their main sectors which can help push the exports include electrical and electronics $60 billion, machinery at $40 billion, chemicals at $40 billion, pharmaceuticals $ 30 billion, petroleum $70 billion and agriculture at $55 billion, among pacts with the US, EU, UK and EFTA will aid the efforts, said FIEO Director General Ajay Sahai, adding that the interim trade deal that exempts India from reciprocal tariffs would offer a big advantage over also said that consignments are gradually going through this important sea route.'It will cut transportation time,' he said, adding that freight rates have stabilised because of a drop in ship demands from gradual movement signals a cautious recovery in shipments after months of disruptions on the route caused by regional tensions. Around 80% of India's merchandise trade with Europe passes through the Red Sea and substantial trade with the US also takes this year, the situation around the Bab-el-Mandeb Strait , a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Due to the attacks, the shippers were taking consignments through the Cape of Good Hope, encircling the African continent, resulting in delays of almost 14-20 days and higher freight and insurance apex trade body said that despite the healthy outlook, some headwinds are expected to come from technical and non-tariff barriers. The latest one facing the industry is the implementation of Digital Product Passport (DPP) that is to be implemented by the EU from January 1, 2026 which aims to digitally record, store, and share information about a product's entire life cycle—from raw materials to manufacturing, usage, recycling, and disposal. It will be mandatory for a wide range of products including electronics, batteries, textiles, and construction materials.
Time of India
5 days ago
- Business
- Time of India
Indian exports resume through Red Sea as route tensions ease
Representative image Export shipments from India have started moving once again through the Red Sea corridor, marking a cautious return to normal shipping operations after months of disruption caused by regional unrest. The development was confirmed on Tuesday by the Federation of Indian Export Organisations (FIEO). The key maritime route, which includes the Bab-el-Mandeb Strait connecting the Red Sea and Mediterranean Sea to the Indian Ocean, had witnessed severe security concerns throughout the past year due to repeated attacks by Houthi militants based in Yemen. These threats had forced shipping lines to reroute vessels via the Cape of Good Hope, significantly extending travel times and raising logistics costs. "Consignments are gradually going through this important sea route. It will cut transportation time," said FIEO Director General Ajay Sahai. He added that shipping costs have stabilised recently, partly due to a decline in vessel demand from China. The Red Sea corridor is a critical lifeline for Indian trade, carrying nearly 80 per cent of the country's exports to Europe and a substantial share of shipments to the US. Together, these two regions account for 34 per cent of India's total exports. Globally, the Red Sea is vital for commerce, facilitating 30 per cent of container movement and 12 per cent of international trade. At the height of the crisis, nearly 95 per cent of vessels had detoured around Africa, adding 4,000 to 6,000 nautical miles and delaying shipments by 14 to 20 days. The resumption of cargo movement through the Red Sea is expected to improve delivery timelines, reduce freight costs, and provide relief to Indian exporters navigating uncertain global trade conditions. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 days ago
- Business
- Time of India
Indian export consignments gradually resuming through Red Sea route: Exporters
New Delhi: Indian export consignments have gradually started moving through the Red Sea route again, exporters body FIEO said on Tuesday. The gradual movement signals a cautious recovery in shipments after months of disruptions on the route caused by regional tensions. Last year, the situation around the Bab-el-Mandeb Strait , a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants. Due to attacks, the shippers were taking consignments through the Cape of Good Hope, encircling the African continent, resulting in delays of almost 14-20 days and higher freight and insurance costs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses India (Prices May Surprise You) Container House | Search ads Search Now Undo "Consignments are gradually going through this important sea route. It will cut transportation time," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. He also said freight rates have stabilised because of a dip in ship demands from China. Live Events Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. About 95 per cent of the vessels had rerouted around Cape of Good Hope adding 4,000-6,000 nautical miles and 14-20 days to journeys.
Deccan Herald
5 days ago
- Business
- Deccan Herald
India's overall exports may cross $1 trillion mark in FY26: FIEO President
CEO and Director General of FIEO Ajay Sahai said exports of Apple iPhones and other smartphones are likely to post robust growth despite the US tariffs.
Time of India
08-05-2025
- Business
- Time of India
Chemical, apparel, auto parts exports to UK to double under trade pact: FIEO
Live Events New Delhi: India's exports of organic chemicals to the UK are seen surging 130% to $966 million by 2027, following the free trade agreement. Exports of woven apparel to the UK could more than double to $1.6 billion, according to the Federation of Indian Export Organisations FIEO ).Carpet exports are projected to increase 80% to $185 million and those of footwear is likely to rise 95% to $545 million, according to an analysis by exported $12 billion worth of goods to the UK during the April-January period of and industry minister Piyush Goyal will meet representatives of export promotion councils Thursday to discuss India's recently announced FTA with the UK.'Apparel,footwear, marine products and auto parts are among the key gainers where India's exports are above $100 million per product category,' said Ajay Sahai, director general, 99% of Indian exports are expected to benefit from zero duty benefit under the India-UK FTA. The pact has opened up export opportunities for India's labour-intensive sectors such as textiles, marine products, leather, footwear, sports goods and toys, gems and jewellery, engineering goods, auto parts and engines, and organic of these sectors have been given a tariff advantage of 4-9%.As per FEIO's analysis, knitted apparel exports—which got a 9% tariff advantage—are projected to grow to $1.1 billion from $654 million earlier. UK's imports around $11 billion worth of knitted apparels products is another beneficiary sector where outbound shipments are likely to almost double to $200 million by 2027, according to firm EY said zero duty on shirts, trousers, dresses, and bed linen will boost exports, adding jobs in textiles and apparel, whereas greater exports of auto parts and engines would aid shipments of engineering mangoes, and marine products are set to get a competitive edge, EY said in a report on FTA will help double India's ready-made garment exports to Britain in the next three years from $1.4 billion in FY25, Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri said, adding that this growth will come amid demand contraction in major economies, Russia-Ukraine conflict, Israel-Hamas war, American reciprocal tariff and Chinese has remained the top supplier of readymade garments to the UK with 25.4% share in 2024. Bangladesh and Turkey have a share of 19.9% and 7.9 %, respectively.
