FIEO sees 2-3% fall in goods exports during FY26

PTI

New Delhi

The country's merchandise exports are expected to register a fall of 2-3% in 2025-26 due to global economic uncertainties, aggravated by the West Asia crisis, according to the Federation of Indian Export Organisations (FIEO).

FIEO President SC Ralhan said the crisis may have led to a decline in shipments by 7-8% in March.

The joint attack launched by the US and Israel on Iran on Feb 28 severely disrupted the country's exports to West Asia, pushed up shipping freight, air transport prices and insurance costs. Disruptions in the movement of oil and gas from Middle East countries have also led to an increase in the prices of raw materials such as steel, plastic and rubber, Ralhan said.

"Exports are expected to record a fall of 2-3% last fiscal and 7-8% in March," he told reporters here.

However, he said India's goods and services exports are likely to rise by 5-6%. Exports stood at $825 billion in 2024-25 ($437 billion goods and $388 billion services). The final numbers will be released by the Commerce Ministry on Apr 15.

Ralhan expressed hope that ship movements would resume soon following the ceasefire announcement for two weeks between the US and Iran.