India's merchandise exports for March are likely to see a dip compared to last year, as the ongoing conflict between Israel, the US, and Iran continues to disrupt trade flows, according to sources.
The government is working on additional relief measures for exporters, particularly on the finance and banking side, as sectors grapple with rising freight costs, shipment delays and order cancellations.
On the trade policy front, India is looking at key milestones in its free trade agreement (FTA) pipeline. The proposed agreement with the United Kingdom could enter into force by end-April or early May, the sources said.
Meanwhile, the India-European Union FTA is likely to be ratified by November-end, indicating steady progress despite global uncertainties.
However, some negotiations are expected to slow down due to the current disruptions. Talks with the Gulf Cooperation Council and Israel may be delayed, while the operationalisation of the India-Oman FTA could also see a pushback.
The developments come at a time when exporters are facing heightened volatility in logistics and market access, prompting the government to step up engagement with stakeholders.
Also Read: Trade Disruption: Centre Rolls Out Rs 500 Crore Relief Package For Exports To Middle East
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