New Delhi, March 13 The Ministry of Commerce is working to provide insurance support to exporters to help them cope with the ongoing West Asia crisis, an official said on Friday.
An inter-ministerial group is monitoring developments on a daily basis and interacting with exporters.
"There is some discussion going on... regarding insurance coverage and support for exporters. We will try to implement this. We are evaluating options," the official said, when asked if the ministry is considering announcing a package for the exporting community.
The Customs department has come out with guidelines for dealing with export cargo returning to Indian ports due to the closure of the Strait of Hormuz and disruptions in maritime routes amid the West Asia crisis.
Exporters are facing difficulties due to a joint attack launched by the US and Israel on Iran. This has led to a surge in ocean freight, air transport, and insurance premiums due to disruptions in the movement of oil and gas consignments.
West Asia is a major export destination (USD 58.8 billion) for India. The crisis will impact India's trade with that region.
"We expect to see some slowdown and a reduction in merchandise exports in this area. But we are working on it. We have established a joint monitoring group here. We are taking feedback from the industry every day," another official said, adding that the government is resolving problems related to ports, warehousing, and port charges.
"We are also working with the Middle East," the official noted.