'Indian exporters to face tougher time this year'
With the slow down in the US economy and rupee appreciation, the Indian exporters are expected to face tough times in 2008, global rating agency Moody's said on Tuesday.
"Indian exporters will have a tougher year in 2008. While export growth is expected to continue to expand at a solid pace, decelerating global demand, particularly from the US, India's largest export market - will temper outbound shipments this year," said Moody's Economy.Com, a subsidiary of the credit rating agency.
The rupee surged 12 per cent against the dollar in 2007, but has weakened against most of the major currencies since the start of the year, said Moody's Economy.Com's Asia Pacific Economics Director Ruth Stroppiana in a report "Economic Indicators: India Foreign Trade".
Moody's noted that despite an appreciating rupee, India's export for the first 11-month period in 2007-08 registered a growth of 22.9 per cent to USD 138.42 billion. Exports grew 35.25 per cent in February 2008 to USD 14.23 billion.
Again, the cumulative imports for April-February period were USD 210.89 billion, up by 30.21 per cent.In February, imports went up by 30.53 per cent to USD 18.46 billion.
However, the impact of rising rupee was evident in the export growth target as the exports grew only 21.71 per cent in rupee terms, while in dollar terms it is 35.3 per cent.