By IANS,
New Delhi : India’s exports will continue to worsen over the coming months as factors affecting overseas shipments such as lacklustre international demand, rising cost of inputs and a weak rupee will continue to plague the sector, according to a survey released Friday.
“A majority (64 percent) of the exporters at the industry and firm level feel that the current and future export conditions will continue to take a toll on their order book position,” according to Federation of Indian Chambers of Commerce and Industry (FICCI) latest export survey.
Only 33 percent were optimistic about their future prospects, it added.
India’s exports rose by 33.2 percent to $192.7 billion in the first eight months of 2011-12 while imports during the same period increased to $309.5 billion, resulting in a trade deficit of $116.8 billion.
About 37 percent of respondents also felt that there will be a decline in future export prices as compared to the previous year, while 22 percent predicted a decrease in the volume of exports in the next six months.
The turnover of the companies that participated in the survey ranged from less than Rs.4 crore to Rs.8,530 crore per annum. Most of the responses came from the engineering, textile and apparel industries.
An increasing gap between India’s exports and imports has been putting the rupee under pressure. The currency has fallen over 17 percent against the dollar, as per Friday’s closing.
FICCI said exporters were in need of the government’s intervention in arresting the decline of the rupee, controlling prices of raw materials such as cotton, coking coal and iron ore.
A few other suggestions were the introduction of customs green channel facility to provide hassle-free, expeditious clearance based on self-declaration, capping of interest rates for the small and medium enterprises at 7 percent, and free trade agreements (FTA) with the European Union at the earliest.