Exporters view steady export growth in H2

Exporters view steady export growth in H2
UNITED NEWS OF INDIA

NEW DELHI, NOV 5: The country had posted a robust export growth during the first half of the current fiscal and the trend would continue in the next six months, the CII exports survey, based on responses from 159 exports, pointed out.

Fifty-nine per cent of respondents, covering all industry sectors, were optimistic about export prospects in volume terms in the next six months. 31 per cent expect the same trend to continue while only ten per cent foresee a deceleration in export prospects.

In the past six months, 45 per cent achieved higher export volume, while it was stagnant for 38 per cent and declined for 16 per cent.

In value terms, 62 per cent of the exporters expect an increase in the next six months, while 30 per cent expect the same trend to continue and only eight per cent foresee a decline. In fact, 21 per cent of the respondents foresaw a decline in exports in the last six months.

During the next six months, 73 per cent of exporters foresee export growth to increase further or the present trend to continue in dollar terms. Nineteen per cent of exporters expect growth to be above 20 per cent, while nine per cent expect the rate to be between 10 and 20 per cent and 45 per cent expect the growth to be between zero and 10 per cent.

In sectoral terms, 54 per cent of exporters from the capital goods industry expect exports to increase in value terms, 42 per cent expect the trend to continue and only four per cent expect a decline.

In the intermediate goods sector, 67 per cent foresee an increase, 24 per cent expect the same trend to continue and only nine per cent expect a negative growth.

The services sector seem to be the most optimistic with 71 per cent expecting an increase in exports and the remaining 29 per cent expect the same trend to continue. None of the service sector exporters expected a decline in exports.

Among the sectors which are doing well in exports include machinery and instruments, transport equipment, primary and semi finished iron and steel, electronic goods and non-ferrous metals among others.

The Indian exporters, however, expect prices (70 per cent), an increase in international competition (69 per cent) as well as the cost of credit (36 per cent) to pose a challenge to their performance in the short-term.

The Government recently converted the export processing zones (EPZs) at Kandia and Surat (Gujarat), Santa Cruz (Maharashtra) and Cochin (Kerala) into special economic zones (SEZs). It has also granted in-principle approval for the establishment of seven special economic zones at Positra (Gujarat) in the private sector and by the state governments at Nanguneri (Tamail Nadu), Dronagiri (Maharashtra), Kulpi (West Bengal), Paradeep (Orissa), Bhadohi (UP) and Kakinada (Andhra Pradesh) have also been granted. These measures, CII expects would give a further boost to exports.