News: Indian export conditions better - FICCI survey

(BL 17/07/2006) New Delhi - Fifty six per cent of exporters feel that current overall export conditions are `moderately to substantially' better as compared to the last six months, finds FICCI's Export Survey for the first quarter (April-June) of 2006-07. The survey was conducted during the month of June and saw participation from 264 companies across the country. The export optimism is so strong that nearly 70 per cent of the companies felt that the export conditions are going to improve in the next six months, finds the survey.

The survey also finds that nearly 63 per cent of the firms at the industry level reported that current export conditions have improved compared to the last six months, while at the firm level 67 per cent of the firms reported this trend.

Key markets that are likely to witness strong export growth from India during the next six months include the European Union, SAARC, West Asia, Latin America and the US, the survey finds.

Biggest worry

As many as 70 per cent of the respondents cited the rise in raw material costs as their biggest problem. The exporting community expressed its worry over shrinking margins as the rise in cost of raw materials was much higher than the increase in prices of finished product.

With regard to the credit lines extended by the EXIM bank, the exporters would like more credit for the African and Latin American regions as these regions are emerging as important export destinations for Indian products, according to the chamber.

Exporters also said that (ICD) Inland Container Depots and (CFS) Container Freight Stations are too few in number to cater to the growing export volumes and there is an imperative need to develop such infrastructure at a fast pace, according to the chamber.