New Delhi: Given the tentative nature of recovery in global demand, it is expected that all exporting sectors will not be uniformly benefitted, India Ratings & Research (Ind-Ra) said Monday.
"Due to tentative nature of recovery in global demand, not all export-oriented Indian corporates will benefit evenly. The key drivers of this asymmetric growth are divergent expectations of growth trends in developed and emerging markets, uncertainty with respect to quantitative easing (QE3) tapering and prices of precious metals," it said.
It said sectors which are expected to be benefitted are pharmaceuticals, textiles and IT.
"We expect the tentative revival of global demand to benefit pharmaceutical companies the most, followed by textiles and IT companies," it said.
In case of pharmaceuticals industry, Ind-Ra said these exports will continue to witness fast-paced growth driven by patent expires, higher health care spending and demand from new markets such as Europe and Japan.
In textiles, the improvement in world consumption is likely to support such exports. Also, most Indian exporters are running on full-capacity and are outsourcing manufacturing on a job work basis as order books are growing ahead of the peak festive season (December).
Textiles exports grew 13.2 percent year-on-year during April-September 2013.
In regard to information technology (IT), the growth would be driven by factors like robust corporate performance in the US which could create a case for an increase in IT companies' budgets along with new job postings.
Tentative recovery in global markets pushed the country's exports to a two-year high of 13.47 percent to USD 27.2 billion in October even as trade deficit worsened on account of rise in gold imports.
Further, Ind-Ra said, engineering exports are likely to witness a muted growth due to moderate demand in emerging markets.
Also, gems and jewellery exporters are unlikely to benefit significantly due to the relatively lower prices of precious metals.
During April-October, the exports grew by 6.32 percent to USD 179.38 billion in April-October, while imports during the period contracted by 3.8 percent to USD 270.06 billion.
First Published: Monday, December 2, 2013, 19:27