NEW DELHI: Indian exports are likely to miss the target of $ 200 bn by 20 per cent this fiscal, as prevailing domestic and global economic conditions have severely affected shipments, a study said.
Besides the slowdown syndrome, other reasons which would affect exports include rising ocean freight rates and certain export restrictions imposed by the government, industry body Assocham said in its study on "Realistic Exports Vs The Targeted One".
"Seven key export segments such as textiles, apparel, gems and jewellery, diamonds, brass-ware, handicrafts and leather are already reeling under recessionary trends," it said.
The chamber anticipates a shortfall of about USD 40 bn in exports this current fiscal.
"Indian exports are likely to witness a shortfall of about 20 per cent against their target as prevailing domestic economic conditions have caused a severe dampening effect on potential export segments of the Indian economy," it said.
In the first two months of this fiscal, merchandise exports do not bring in as much foreign exchange as those brought in by high-value added products such as ready-made garments, diamonds, jewellery, gems, carpets, handicrafts and brass-ware, an Assocham spokesman said.
In September, India's exports registered a growth of mere 10.4 per cent against 26.9 per cent in August.
Other factors that have eroded costs and competitiveness of Indian exports include rising input costs, which are not falling, and power and infrastructure remain a problem for the manufacturing sector.
As a result, India is still far behind on logistics and the transaction cost of exports have already risen around 20 per cent, Assocham said.
The country is facing stiff competition on the exports front from neighbouring China as well as from Bangladesh, Sri Lanka, Pakistan and Bhutan.
As a result, its traditional exports have suffered in the past, which will continue to suffer even in the future until exporters make amends to their products by technology infusion.
No comments:
Post a Comment