By IANS
New Delhi : Hit by the unabated rise of the rupee, which hit a nine-year high this month, exporters have called for immediate implementation of relief measures announced by the government, according to a FICCI survey.
Even as exporters have welcomed measures announced by the government to offset their losses, such as reimbursement of service tax paid by exporters for port, road transport and rail services, they have expressed concern regarding procedural delays, according to the survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).
The rupee traded as high as Rs.39.89 a dollar Thursday, highest since 1998, following a reduction in US interest rates.
The government in July had announced an incentive package of Rs.14 billion for exporters but the exporters were not impressed.
According to the survey, almost all leading exporters of the country have demanded reduction in interest rate on pre-shipment and post-shipment credit, something which is dependant on measures to be taken by banks.
The survey, conducted among over 280 companies from sectors ranging from automobiles, consumer durables, food processing, leather, marine products, gems and jewellery, FMCG (fast moving consumer goods) and textiles, also indicated a slowdown in the performance of exporters due to the increasing trend of thinning margins.
Besides appreciation of the currency, FICCI also cited other reasons for poor export performance, which include rising cost of raw materials, competitive environment, increase in oil prices, cost of credit and inadequate infrastructure.
The top regions identified by exporters where strong movements in export volumes are likely to take place in the next six months include the Middle East, Africa, Southeast Asia and the European Union.
In July the country’s trade deficit widened to reach $5 billion compared to $4 billion in 2006. While India’s exports registered a growth of 18.5 percent at $12.5 billion, imports rose 20.4 percent to $17.5 billion.