India to Launch Weekly Sectoral Stress Indicator to Monitor Trade Amid Geopolitical Tensions
Commerce secy calls for weekly sectoral stress indicator amid crisis
Business Standard
Image: Business Standard
In response to ongoing disruptions in trade due to conflicts in West Asia, India's Commerce Secretary Rajesh Agrawal announced the establishment of a 'sectoral stress indicator' to monitor export-import activities weekly. Stakeholders highlighted supply chain challenges and rising input costs, prompting calls for support to ensure critical inputs remain available.
- 01India will implement a weekly sectoral stress indicator to track trade activities.
- 02Ongoing geopolitical conflicts are disrupting logistics and trade in India.
- 03Industry representatives raised concerns about rising input costs affecting various sectors.
- 04Support for critical inputs like LNG and early GST refunds was requested to improve liquidity.
- 05Regular consultations with stakeholders will continue to address emerging challenges.
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Amid disruptions in trade and logistics caused by conflicts in West Asia, Indian Commerce Secretary Rajesh Agrawal announced the creation of a 'sectoral stress indicator' to monitor export-import activities on a weekly basis. This initiative follows a high-level stakeholder consultation aimed at addressing challenges in logistics, packaging, and shipping that are impacting India's trade ecosystem. During the meetings, industry leaders highlighted significant risks, including supply chain constraints and rising input costs in sectors such as apparel, leather, optical fibre, and medical devices. They called for ongoing support to ensure the availability of critical inputs like liquefied natural gas (LNG), helium, and petrochemical derivatives, as well as early refunds on goods and services tax (GST) to enhance liquidity. Agrawal emphasized the importance of assessing packaging inputs and mapping domestic production capacities to identify import dependencies. The Shipping Secretary also addressed documentation processes and operational challenges in cargo movement, indicating a proactive approach to resolving issues. The meetings included participation from port authorities, shipping agencies, and various industry stakeholders, reflecting a collaborative effort to strengthen India's trade resilience.
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This initiative aims to mitigate the impact of rising input costs and supply chain disruptions on various industries, particularly benefiting micro, small, and medium enterprises (MSMEs) by improving liquidity and ensuring the availability of critical inputs.
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