Export target will fall short by $40 bn, warns industry
:
NEW DELHI: Exports are likely to fall short of the targeted $200 billion
in 2008-09 by about 20 per cent, says a report by an industry lobby.
According to the Associated Chambers of Commerce and Industry of India
(Assocham), seven key export segments - textiles, apparel, gems and jewellery,
diamonds, brassware, handicraft and leather - are reeling under recessionary
trends, which will affect the overall exports figures.
These sectors put together constitute the highest volumes in India's
total exports to economies such as the US, the European Union and ASEAN
countries.
"Naturally, these sectors will not be able to generate their previous
export momentum and Assocham anticipates a minimum of $40 billion exports
shortfall for current fiscal," the report said.
India's foreign trade policy for the current fiscal has fixed export
targets for 2008-09 at $200 billion.
As the exports are to high-value markets, Assocham has felt pessimistic
about the export scenario.
Additionally, the report said, Indian exports will also be hit in 2008-09
by rising ocean freight rates, weakening rupee-dollar exchange rate, and
deepening recession in the US and Europe.
Other factors that have eroded competitiveness of Indian exports are
rising input costs and the poor power and infrastructure that has hit the
manufacturing sector, the report says.
India lags behind in logistics, and as a result, the transaction cost of
exports has risen by about 20 per cent, the report says quoting "latest
estimates".
All these factors have also rendered Indian exports non-competitive as
India is facing stiff competition not only from China, but also neighbours like
Bangladesh, Sri Lanka, Pakistan and Bhutan.
As a result, India's traditional exports have suffered and threatens to
continue until exporters adopt modern technology, concludes the Assocham
analysis.
The report, however, adds that exports that would have reasonably good in
pharmaceutical and chemicals, heavy engineering, and metal and marine products,
besides fast moving consumer goods.
These sectors continue to command demand not only in the domestic market
but also in the Middle East, Sotuh-East Asia and Africa.
http://economictimes.indiatimes.com/Export_target_will_fall_short_by_40_bn_warns_industry/articleshow/3692108.cms
"Some cause happiness wherever they go; others whenever they go."
- Oscar Wilde
--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups
"Kences1" group.
To post to this group, send email to [email protected]
To unsubscribe from this group, send email to [EMAIL PROTECTED]
For more options, visit this group at
http://groups.google.com/group/kences1?hl=en
-~----------~----~----~----~------~----~------~--~---
