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

Believers IAS Academy