Impact of Western Sanctions on Indian Exports
- Engineering Export Promotion Council(EEPC) of India has stated that Global sanctions on Russia may help spur Indian exports.
- The sanctions which has been imposed by the western nations on Russia due to its conflict with Russia has had several impacts politically and economically.
- Taking this crisis as a challenge many countries are trying to exploit this opportunity to further their export potential.
- India which is maintaining a fine balance with both the western and eastern blocs can utilize the opportunity.
- This was also witnessed in the pandemic situation where the exports of engineering goods increased significantly.
- The exports of engineering goods jumped to $81.8 billion during April-December 2021 as compared to $52.9 billion during the same period in the previous year (2020), growing by 54% on a low base of the pandemic year, according to provisional figures from the Ministry of Commerce & Industry.
- The war has posed severe challenges to the world in all aspects but importantly on the economies and global trade.
- As seen recently the covid cases in China has been increasing and it can have significant impact on the supply chains.
- This disruption in the supply chain mechanism will halt the manufacturing processes around the world.
- Rising steel prices in India also could have huge impact as India’s finished steel exports (globally) were at 78 million tonnes in 2020-21, against 8.3 million tonnes in 2019-20.
- In the last fiscal year, total production stood at 96.2 million tonnes, while consumption was at 94.89 million tonnes.
Source: The Hindu