India’s small and medium-sized exporters are facing payment delays and cash flow pressure due to a sharp increase in freight costs due to war insurance premiums and emergency surcharges, the trade ministry said on Thursday.
Freight and insurance costs on routes through conflict-affected West Asia have risen sharply, with exporters’ ability to pass on costs limited, the ministry said.
New Delhi has also launched a 4.97 billion rupee ($53.26 million) scheme to insure goods passing through affected corridors to stabilize costs and prevent order cancellations.
(Reporting by Manoj Kumar and Shivangi Acharya; Editing by Muralikumar Anantharaman)
