New Delhi, Aug. 16 A survey on exports by the Federation of Indian Chamber of Commerce and Industry (FICCI) reveals that most exporters are optimistic of an improvement in scenario by the year-end.
In the previous survey, conducted in January, most exporters had reported that they are facing a “grim situation”.
About 316 companies took part in the latest survey. The participating companies had turnover ranging from Rs 50 lakh to Rs 7,000 crore.
New orders
The optimism comes despite the fact that volatility in exchange rates and rising input costs continue to plague exporters.
The survey states that while the period of negative growth would remain for some time, there would be an improvement with the decline in exports slowing. The export survey also reports that though new orders are yet to come in, cancellation of orders has slowed down. More than half of the respondents to the survey say their order book position has increased or has stayed the same vis-À-vis the position six months ago.
Plea to Govt
In the January export survey of FICCI, only a third of the respondents had said that they expect export volumes to go down in the next six months.
In spite of the optimistic outlook, almost half of the survey respondents in the latest survey say the upward trend in commodity prices worldwide was hurting their business.
Further, the swift and wide changes in exchange rates are making it difficult for the exporters to secure themselves against variations.
The respondents of the survey also made some suggestions to the Government to help the exporting community. The respondents want the Government to enhance the DEPB rates as this would help in keeping export prices competitive.
Suggestions also include a simplification of the Duty Free Import Authorisation scheme and an extension of interest subvention to all sectors.
Source : Business Line