New Delhi, Feb. 23 The appreciation of the rupee and the aggressive Chinese moves to push exports are worrying exporters, according to the latest FICCI Export survey.
“The scenario is such that exporters are expecting support from the Government as the Chinese are getting massive support for their growth.
“Equally, with the global recovery in its initial stages, the Government should watch the export performance in 2010 before taking a call on stimulus measures for exporters,” said Mr Harsh Pati Singhania.
The survey states that the recent export performance should be evaluated keeping in mind that this came on the back of low/negative growth in the same period of the previous year.
The survey was conducted in January and February 2010 with participation from 264 companies having turnover ranging from Rs 60 lakhs to Rs 5,500 crore.
The survey respondents have said that the global market is showing signs of improvement and there is an evident pick-up in demand abroad. Survey respondents said, “Export conditions have improved and there is a feeling that the recent performance with exports growth entering positive territory since November 2009 is likely to continue in the near term.”
But despite the positive trend, exporters are still apprehensive of the appreciating rupee and the efforts made by the Chinese Government to encourage its exports. Respondents have said that while market enquiries have resumed and buyers are coming forward, the pace of new business is still low compared with that seen during the pre-crisis levels.
Exporters have also indicated in the Survey that the stimulus measures provided them with reasonable cushion and support to compete with the exporters from other countries.
The exporters want the Government to wait for a performance in the calendar year 2010 and then take a call on withdrawing stimulus measures.
Source : Business Line