This comes a week after the Ministry of Trade and Industry asked DFS to maintain credit flows to exporters amid disruptions in the Red Sea region that could affect more than 80% of exports to Europe , after an inter-ministerial meeting on Jan. 17.
The Ministry of Finance is expected to hold a high-level meeting on February 5 to ensure smooth trade payments amid challenges from disruptions in the Red Sea region. The payment settlement mechanism for disrupted trade routes as well as outstanding issues related to vostro accounts are likely to be discussed during the meeting, officials said.
The meeting, chaired by Secretary Department of Financial Services (DFS) Vivek Joshi, will bring together officials from the Ministries of Finance, Commerce and Industry, External Affairs, Reserve Bank of India (RBI) and the Insurance Management and Development Agency. Government of India (IRDAI).
“This is a planned coordination meeting between government ministries, regulators and banks to discuss trade-related payment issues. The aim is to listen to all stakeholders and find solutions for orderly business transactions and settlements,” a senior government official told The Indian Express.
This comes a week after the Ministry of Trade and Industry asked DFS to maintain credit flows to exporters amid disruptions in the Red Sea region that could affect more than 80% of exports to Europe , after an inter-ministerial meeting on Jan. 17.
Freight rates for transporting goods to Europe have more than doubled due to security tensions in the Red Sea region. Concerns about disruption in the Red Sea region have grown and oil prices have begun to rise since the US and UK attacked Houthi rebels in Yemen earlier this month in retaliation for attacks on US commercial vessels. They are in the Red Sea area.
India’s export shipments of low-value products such as agricultural products and textiles to Europe are expected to mainly face the impact of disruptions in the Red Sea region due to shipping costs. transfer increases. Previously, the government asked the Export Credit Guarantee Corporation (ECGC) not to increase insurance premiums in response to rising shipping costs to Europe.
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