Exporters remain confident on demand pick-up in US, EU: FICCI
With demand improving in the traditional markets of the US and EU, exporters' confidence for the coming six months has increased despite appreciating rupee, a FICCI survey said on Sunday.business Updated: Oct 24, 2010 12:51 IST
With demand improving in the traditional markets of the US and EU, exporters' confidence for the coming six months has increased despite appreciating rupee, a FICCI survey said on Sunday.
"Nearly 64 per cent of the participating firms feel that overall export conditions are much better compared to the situation six months back," it said.
The survey, conducted during September and October 2010, is based on responses of 254 exporting companies with a wide geographical and sectoral spread.
The findings suggested that buying activity in the international market has picked up in recent times. Conditions for payments from buyers have also improved.
Three-fourth of the participants said their expectations are "even more encouraging" than the performance in the first few months of the current fiscal.
Country's exports, which remained in the red for 13 months to October 2009, increased by 22.5 per cent in August 2010 to USD 16.64 billion year-on-year on improved global demand for the domestic merchandise.
Commerce and Industry Minister Anand Sharma recently said that India would achieve the USD 200 billion exports target for the current fiscal.
The Ficci survey revealed that importers of gems and jewellery, handicrafts and textiles in US and EU are stocking up in the expectation of better demand in their markets in the wake of upcoming festive season.
The US and EU are India's traditional markets, accounting for one-third of the country's merchandise exports.
The optimism prevails despite appreciation of rupee against the US dollar affecting exporters' margins.
"The adverse movement in the value of the rupee blunts the effectiveness of these efforts leaving the exporters in the same position from where they started – one of compressed margins and profitability," FICCI said.
Rupee has appreciated by about five per cent against the dollar since January.