US-Iran Understanding to Boost Indian Exports, Ease Logistics and Energy Costs: FIEO
New Delhi, June 18 (TNT): The Federation of Indian Export Organisations (FIEO) on Thursday said the signing of the US-Iran Memorandum of Understanding (MoU) could significantly improve global trade conditions and provide a major boost to India’s export sector by easing geopolitical tensions in West Asia.
In a statement, FIEO President S. C. Ralhan said the development comes as a major relief for the export-import community after months of disruptions that had adversely affected trade volumes and exports to the Middle East.
He said a stable West Asian region would help revive consumer and industrial demand, creating fresh opportunities for Indian exporters and improving shipment volumes in the coming quarters.
Ralhan noted that lower geopolitical tensions had already contributed to a decline in crude oil prices, with Brent crude easing towards the USD 78 per barrel level.
This, he said, would reduce India’s import bill, ease inflationary pressures and lower input costs for export-oriented sectors such as chemicals, textiles, plastics and paints.
The FIEO chief also said the Indian rupee had strengthened due to reduced pressure on energy imports and improved foreign capital inflows, providing exporters with greater currency stability and predictability in trade contracts.
Highlighting the logistics impact, he described the reopening of the Strait of Hormuz as a major development for global supply chains. The restoration of normal maritime traffic is expected to reduce freight charges, lower war-risk insurance premiums and shorten transit times for shipments to West Asia, Europe and Africa.
According to FIEO, smoother shipping operations and reduced logistics costs would enhance the competitiveness of Indian exports in international markets.
Ralhan said India’s export sector had already begun the current fiscal on a strong note with double-digit growth in the first two months and expressed confidence that the country remained on course to achieve the government’s target of USD 1 trillion in merchandise and services exports.
TNT KS
