India's exports growing despite odds: study
Sunday, 11 March 2007, 18:30 IST
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New Delhi: India's exports are growing with a positive outlook despite the odds exporters face, according to a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI). According to FICCI, though the Indian exporting community faces deterrents such as increasing raw materials, interest rates and appreciation of the currency, the overall outlook of exports for the third quarter of fiscal 2006-07 has been positive. "India's exports are likely to move into a phase of consolidation with little probability of surprises on the upside," said the survey in which 263 companies participated from various sectors. A whopping 78 percent felt that within the next six months their export volumes would increase, while 32 percent of the companies were of the view that their exports would go up in the next six months. "SAARC, UK, Middle East, UAE, European Union and Latin America are the key regions or countries that will see a strong increase in their imports from India in the next six months", noted the survey. According to FICCI, exporters in India are also facing the challenges of inadequate infrastructure, poor power and port facilities, cumbersome customs and excise procedures. "The exporters have demanded that the government should lower the duty on the imports of raw material meant for the exports," the survey highlighted. "They have also requested to take a re-look at the benefits accrued to the industries from the schemes launched earlier relative to schemes launched or replaced in 2006-07." China, Thailand and ASEAN (Association of South-East Asian Nations) countries are increasingly taking measures to develop their exports industry, says FICCI, and for India to sustain its competitive edge over others it is imperative to provide necessary benefits to the exporting community. "While these results depict a rise in the exports for a majority of exporters, there are also indications of a consolidation in the exports in the coming months," the survey said.
Source: IANS
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