Exports to revive by year-end: FICCI
Though signs of an economic turnaround were starting to appear, a complete recovery for India`s crisis-stricken exports sector would happen only by the year-end, according to an industry survey.
New Delhi: Though signs of an economic turnaround were starting to appear, a complete recovery for India`s crisis-stricken exports sector would happen only by the year-end, according to an industry survey.
"The quantum of decline on year-on-year basis may come down in the months ahead. But for exports to register reasonable positive growth, we will have to wait at least till the end of this year," said a survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).
"Even though exporters are buffeted by the volatility in the exchange rate and the pressure of rising raw material cost, there is an improvement in the overall sentiment," it added.
The survey was conducted in June-July among 316 companies, with a turnover in the range of Rs 50 lakh to Rs 7,000 crore.
Among the various challenges that exporters faced, weak demand in the international market, increasingly competitive environment and high cost of credit were repeatedly cited as the main factors that were hampering export performance.
Sixty-one percent of the respondents also said that exchange rate fluctuations were too frequent and happened over a broad range, thus affecting profitability.
India`s exports sector has seen a contraction for nine straight months starting from October 2008.
The companies urged the government to provide compensation for inland freight cost and enhance trade with emerging markets like Brazil, South Africa and Mexico.
Freight costs to these countries are higher and exports to these countries must be supported, the survey said.