With the Russia Ukraine war not coming to an end anytime soon, the situation is now bittersweet for the Indian exporters. The war has made a devastating blow to the global supply chains. Between the various sanctions against Russia, the crippled Ukrainian ports & airports, the ceased trade & container movements, and the rising crude oil prices, Indian exporters are in tough luck.
According to Union Minister Nitin Gadkari, Indian exporters are sitting on various large export orders due to concerns of surged freight rates, container availability and port issues.
Because of these complications, the industry is not being able to take advantage of such large exporter orders.”~ Nitin Gadkari
The Minister, while addressing an industry event, also mentioned that India needs to reduce its dependence on crude oil and shift to alternative fuels like green hydrogen. Additionally, he said that the 35 upcoming MMLPs, to be built on public-private partnership, will act as catalysts to the Indian exports and will make them internationally competitive.
Even as the war goes on, India is heavily dependent on Russia and Ukraine. 85% of India’s military equipment is of Soviet origin. In fact, the country’s entire tank inventory, with the exception of the Arjun Tanks, is entirely Russian. India is also dependent on Russia for its crude oil, natural gas and coal imports. The top exports to Russia include electronics, iron and steel, tea and auto components.
As far as Ukraine is concerned, the two-way trade between India and Ukraine was USD 3.1 billion in 2021. India’s exports to Ukraine include pharma products, telecom instruments, iron and steel, agrochemicals, coffee etc. India also imported goods worth $2.6 billion from Ukraine last year, including vegetable oils, mainly sunflower oil. Ukraine alone accounts for 70% of India’s sunflower oil imports.