Exports set to rebound in december: FICCI

Ronojoy Banerjee
Financial Chronicle
Despite markets in the West looking far from promising, exporters in India are seeing some signs of a revival. In a survey conducted by Federation of Indian Chamber of Commerce and Industry (Ficci), majority of respondents said exports were expected to be in positive terrain by December this year.

Orders are finally tricking in, though not at the pace seen previously, said the survey released on Sunday.

The survey, conducted among 316 companies across sectors such as fast moving consumer goods, textiles, handicrafts, metal and metal products, pharmaceuticals and IT, found that year-on-year, the quantum of decline in exports had seen a dip. “There is expected to be an improvement but only in terms of the fall in exports getting smaller,” the survey said, adding that it could be another year before any “reasonable positive growth” is witnessed.

In lieu of this, exporters have sought extension of duty entitlement passbook scheme rates beyond December 31, 2009, simplification of the process under duty free import authorisation scheme, interest subvention extended to all exporting sectors, inclusion of more nations in the focus market scheme, exemption of service tax and temporary reintroduction of exemption under Section 80 HHC of the Income Tax Act, among others. The fast movement in exchange rate in the past six months is also creating problems for exporters. In a similar survey in January, 29 per cent exporters had cited this problem, but now their number has gone up to 61 per cent.