Latest news with #AjaySahai
Time of India
a day ago
- Business
- Time of India
Oil, inflation not immediate worries
NEW DELHI: Govt is drawing comfort from its diversified oil purchases but is keeping close tabs on the situation in the Strait of Hormuz, which accounts for nearly a fifth of global oil consumption, in the wake of the US attack on Iran. The Strait - which serves as the primary export route for Persian Gulf producers such as Saudi Arabia, the UAE and Iraq - is crucial not just for crude supply - but also cargo headed to West Asian markets. Amid the threat of disruption by Iran, govt sources indicated that other routes will be explored. With Brent spiking to $90 a barrel, the margin of the oil companies selling petrol and diesel will get eroded but is unlikely to result in changes in pump prices due to the recent excise duty related changes. Although Opec may impact the overall calculations, India is estimated to have imported more oil from Russia this month than the combined quantity of shipments from West Asia. India's strengthening of ties with Russia on crude purchases post-Ukraine conflict are expected to come to its aid to ensure that there is no disruption, sources said. Beyond oil, there may be concerns on gas as large quantities come from the Gulf region. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Wrinkle Cream Keeps Selling Out At Costco (Find Out Why) The Skincare Magazine Undo Besides, the price of piped cooking gas and CNG are linked to these and may impact the overall cost dynamics for industry too. Given that retail inflation in May had moderated to an over six-year low of 2.8%, price increase is not an immediate worry, but its future trajectory will weigh on policymakers, apart from adding to the already high levels of geo-political uncertainty. For trade, war risk insurance is seen to be a challenge, including its availability and pricing. "Overall demand will take a hit. There is massive uncertainty," said Fieo director general Ajay Sahai. "Simultaneously, the situation in nearby Red Sea is deteriorating. Following Israeli airstrikes on Houthi forces on June 14-15, tensions have escalated, placing India's westbound exports at fresh risk. Nearly 30% of India's exports to Europe, North Africa, and US East Coast transit through the Bab el-Mandeb Strait, which is now increasingly vulnerable. If security conditions force shipping to reroute via the Cape of Good Hope, delivery times could increase by up to two weeks, sharply raising costs for Indian exporters," added Ajay Srivastava of GTRI, a trade research body. 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
14-06-2025
- Business
- Time of India
Exporters' logistics costs may jump 20%
India's exports could face 15-20 per cent higher logistics costs due to the Israel-Iran tensions, experts said. The Pakistan air route is already closed to India's carriers and now the closure of Iran's airspace will add to air cargo costs. The higher fuel costs will make sea transport costlier-crude was trading 8 per cent up at press time. "We are watching the situation. There could be a temporary disruption of some exports, but it is too early to say," said an official. In FY25, India's goods exports to Israel were USD 2.1 billion and imports were USD 1.6 billion, while with Iran, the shipments were USD 1.2 billion and USD 441.9 million, respectively. While the supply of rough diamonds from Israel to India could get impacted, New Delhi may still be able to supply cut and polished diamonds to countries that otherwise depend on Israel for the precious stones. Ajay Sahai, director general of Federation of Indian Export Organisations (FIEO), said the closure of the Pakistan air route and the Iran air route will add to costs. "Shipping lines disruption is expected on the Red Sea and Suez Canal route. Earlier, trade had begun through the Red Sea, but now voyages will become irregular, bringing huge uncertainties," Sahai said. Generally, air freight is 7-8 times costlier than sea freight. "There could be a small hit to food exports, but we don't see a concern there because food-related disruptions are usually resolved at the earliest," said another official. The recent gradual movement of Indian export consignments was being seen as one of the drivers for the country's goods and services exports to cross USD 900 billion in FY26. The gradual movement signalled a cautious recovery in shipments after months of disruptions on the route caused by regional tensions. 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.
Time of India
13-06-2025
- Business
- Time of India
Exporters' logistics costs may jump 20%
India's exports could face 15-20% higher logistics costs due to the Israel-Iran tensions, experts said. The Pakistan air route is already closed to India's carriers and now the closure of Iran's airspace will add to air cargo costs. The higher fuel costs will make sea transport costlier-crude was trading 8% up at press time. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold Container Homes in Nueva Ecija - Prices You Won't Believe! Shipping Container Homes | Search Ads Search Now Undo "We are watching the situation. There could be a temporary disruption of some exports, but it is too early to say," said an official. In FY25, India's goods exports to Israel were $2.1 billion and imports were $1.6 billion, while with Iran, the shipments were $1.2 billion and $441.9 million, respectively. While the supply of rough diamonds from Israel to India could get impacted, New Delhi may still be able to supply cut and polished diamonds to countries that otherwise depend on Israel for the precious stones. Live Events Ajay Sahai, director general of Federation of Indian Export Organisations (FIEO), said the closure of the Pakistan air route and the Iran air route will add to costs. "Shipping lines disruption is expected on the Red Sea and Suez Canal route. Earlier, trade had begun through the Red Sea, but now voyages will become irregular, bringing huge uncertainties," Sahai said. Generally, air freight is 7-8 times costlier than sea freight. "There could be a small hit to food exports, but we don't see a concern there because food-related disruptions are usually resolved at the earliest," said another official. The recent gradual movement of Indian export consignments was being seen as one of the drivers for the country's goods and services exports to cross $900 billion in FY26. The gradual movement signalled 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 route.
Time of India
27-05-2025
- 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
27-05-2025
- 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
