The latest data released by the commerce and industry ministry on Wednesday highlighted the impact of weak global demand, particularly in Western countries, contributing to India's trade deficit reaching a four-month high.

According to the report, this war is causing higher insurance premiums (15–20 percent), delays caused by rerouting (up to 20 days longer), and possible cargo loss from piracy and attacks. Shipping expenses are also expected to grow by 40–60 percent.

In a move to strengthen trade ties, the DGFT has approved the export of 4,750 tonnes of onions to Bhutan, Bahrain, and Mauritius, while also implementing import restrictions on premium duck meat for hotels and restaurants, and revising registration timelines and procedures for yellow pea imports on Wednesday.

Consumer Affairs Secretary Rohit Kumar Singh gave the confirmation, while speaking to a media house, stating, "We have allowed export of 50,000 tonnes of onion to Bangladesh, 1,200 tonnes to Mauritius, 3,000 tonnes of Bahrain and 560 tonnes to Bhutan with immediate effect." 

DPIIT Secretary Rajesh Kumar Singh,addressed the India-Singapore Trade Roundtable on the Food and Machinery Sector, organised by the Federation of Indian Chambers of Commerce & Industry (FICCI) and the High Commission of India in Singapore, in partnership with the Singapore Business Federation.

"As per the available data, our bilateral trade with Canada and exports to Canada have registered an increase in 2023, compared to the volume of trade and exports in 2022," he said.

The disruption in the Red Sea route, caused by increasing attacks on ships since November 2023, has compelled global shipping lines to opt for longer trade routes, significantly affecting transit times and costs.

The stringent investment curbs had a profound impact, disrupting billions of dollars worth of investments between the world's two most populous countries. Planned projects, including those involving Chinese automakers BYD and Great Wall Motor, were put on hold.

The official statement from Indian officials accentuates the looming cautious approach, “Bangladesh has reduced overall imports and is thinking of joining the RCEP. We are cautious about it. We are watching the implications on trade and industry”

Commerce and Industry Minister Piyush Goyal will chair a meeting of the Board of Trade on December 17 to discuss ways to boost exports, an official said.