Indian exporters see no significant gains from fall in the value of rupee against dollar as the slowdown in world's largest economies such as US and Japan have brought down the demand.
Exporters believe that global meltdown would further impact exports adversely in the second half of the current fiscal.
India has set export target of USD 200 billion for the fiscal 2008-09 but the country will not be able to meet the target in the wake of global recession. “Current economic slowdown has already started taking its toll on Indian exports, which declined by 20 per cent in the month of September and it is likely to fall further in coming months,” Western Region chairman of Federation of Indian Export Organisation (FIEO) Sharad Kumar Saraf expressed concern while addressing a seminar on ‘Meeting New Global Economic Changes’ here in Ahmedabad.
There has been a sharp decline in the exports of tea (-20%), handicrafts (-70%), carpets (-32%), oil meals (-50%), man-made yarn (-17%), cotton yarn (-17%) and marine products (-19%). Apart from this, agro products exports have also taken a beating, he added.
Generally, weaker rupee helps exporters shore up more profits but the buyers in the overseas markets are facing liquidity problems due to slowdown. “As a result, rupee depreciation is not helping improve exports from the country,” he added.
Financial crisis in western parts of the world has not led to cancellation of export orders from India but it has definitely resulted into delay in export contract execution, said Dhansukhbhai Vora, honorary secretary of Greater Rajkot Chamber of Commerce and Industry (GRCCI).
In the present scenario, importers need more fund and liquidity to combat global turmoil.
The cost of fund is also an area of concern for the exporters. The exporters also sought increase in loans or funds meant for exports. “Exporters should be extended funds at bank rate instead of benchmark prime lending rate (PLR),” Saraf added.