The Ukraine-Russia conflict has impacted exports of Indian pharmaceuticals, tea, coffee and marine products, but bilateral trade with Russia has improved, Commerce and Industry Minister Piyush Goyal said on Wednesday.
The precise implication of the war scenario could be assessed only after the situation stabilises, Mr. Goyal said in response to MPs’ queries as to whether the government had estimated the scale of impact of the war in Europe on Indian industry and commerce.
“As per the feedback received from the industry, exports of some products from India are affected such as pharmaceuticals, telecom instruments, tea, coffee, marine products, etc.,” Mr. Goyal said in the Lok Sabha. “The bilateral trade with Russia has, however, improved in comparison to corresponding period last year,” he added.
On plans for a financial stimulus in the wake of the war’s impact, the Minister said the government had provided for fiscal stimulus in this year’s Budget with a Gross Fiscal Deficit to GDP ratio budgeted at 6.4%.
Minister of State for Commerce and Industry Anupriya Patel separately informed the Lok Sabha that India’s negotiations with the European Union for a Free Trade Agreement (FTA) had been restarted last month and similar talks were underway with Canada, Israel and the United Kingdom.
She also said that a draft National Logistics Policy had been readied and circulated for inter-ministerial consultations while an export credit cover scheme called Nirvik (Niryat Rin Vikas Yojana) was being re-examined in view of the changed market situation to provide enhanced cover for small exporters.
