Additionally, Visakhapatnam Port handled just 37,000 TEUs last month, as against 48,000 TEUs in the prior month, data shows, with other smaller ports in India also reporting volume declines in September, on a month-on-month basis.

That deceleration reflects a slowing of India’s export/import trade due to global economic headwinds.

“The headwinds in global trade are equally reflected in the WTO [World Trade Organisation] forecast for 2023, released recently, which has projected it to grow at 1% only,” the Federation of Indian Export Organisations (FIEO) said in a statement.

The federations added that “India, being a domestic demand-driven economy, will not be much impacted by these developments though we will not be insulated either.”

FIEO, however, noted that exporters are working proactively to mitigate the impact of global demand challenges.

The association explained, “While the Russia-Ukraine war is a setback to our exports in the short run, we are looking to increase our exports to Russia once the Rupee payment mechanism gets operationalised. As per our study, we can add about US$5 billion in exports to Russia. With Europe maintaining sanctions on Russia, we expect the trade to divert from Russia to India.”

Jenny Daniel
Global Correspondent

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