New Delhi: In the midst of freezing in the flow of funds that kicked, Indian exporters have been suggested for caution while dealing with their partners in Afghanistan affected by the crisis, where the Taliban government has taken control.
“There is fear of default in payments due to problems related to banking and the overall impact on life.
We advised the exporter to take credit coverage for their delivery and in cases where there was time to meet the time limit, they had to wait for things to stabilize,” Officials Main with the body federation of Indian export organizations to TOI.
India’s trade with Afghanistan is not large, with the country taking into account less than 0.3% of Indian exports and 0.1% imports, with overall trade during the last fiscal year set at $ 1.4 billion.
Read the Alsonew Taliban regime Casts Shadow on India Business in Afghanistanalban Seize Control in Afghanistan presents new challenges for Indian companies with new business ink in new countries.
While the existing project is funded by international and insured institutions, Indian companies are wary of the business prospects under the Taliban regime.
But it can cause a while in several segments such as dried fruit, which accounts for 63% of all exports from Afghanistan.
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Over the next few weeks, traders expect other countries to fill their gaps.
For India, sugar and textiles are the two biggest export items with Pharma, cereals, tea, coffee and spices that make it to seven top products (see Graph).
In addition, several aspects such as the EPC contract implemented by Indian companies and project exports have slowed in recent years.
For now, political instability and payment are great concerns, even though the trade routes – which are mostly by air or through Dubai and the international North North Transportation corridor – technically remain open.
“The greater impact is seen on imports from the land route that passes through Pakistan to India.
As is informed by the current business, while restrictions on the Afghanistan no longer live, Pakistan continues to seal Torkham’s border while some personnel movements are permitted at the Chaman border.
This encourages Development because the movement of goods can begin immediately, “said Director General Fieo Ajay Sahay.
Guard against the default Afghan payment, exporter warns
