Rising Fuel and Freight Costs Squeeze Margins for Indian Exporters: Petros Stone LLP

Petros Stone LLP has highlighted the growing financial pressure faced by Indian exporters amid rising fuel prices, elevated freight rates, and ongoing global supply chain disruptions.

Commenting on the current market situation, Rishabh Jain, Director – International Business at Petros Stone LLP, said that the recent fuel price hike of over ₹3 per litre is significantly increasing both domestic logistics expenses and international freight costs. He noted that exporters are already grappling with high ocean freight rates and continued volatility in the West Asia corridor.

According to Jain, while the weaker rupee has provided limited relief on export realisations, it is insufficient to fully offset the mounting operational costs impacting manufacturers and exporters across sectors.

He further observed that many businesses are now focusing on survival-driven strategies rather than expansion or strategic growth. Manufacturers are reportedly slowing production, liquidating inventory, and fulfilling orders through existing stock in an effort to manage working capital and reduce operational strain.

The ongoing cost pressures are also leading to gradual industry consolidation, as smaller and less competitive players struggle to sustain operations in an increasingly challenging export environment.

The statement reflects broader concerns within India’s export and manufacturing ecosystem, where rising logistics costs, geopolitical uncertainties, and supply chain volatility continue to impact profitability and competitiveness in global markets.