The export scenario for the domestic small and medium sector industries seems to be promising for the next six months, according to the 17th Business Outlook Survey for small and medium enterprises (SMEs) conducted by the Confederation of Indian Industry (CII).
The survey shows that 56 per cent of the respondents envisage an increase in volume of their exports, 34 per cent feel that the market will be stagnant, while 10 per cent of the respondents expect a decline in exports in the next six months.
In value terms, 58 per cent of the respondents foresee export value to increase while 31 per cent expect it to remain the same, where as 11 per cent of the respondents expect it to decrease in the next six months, according to the survey.
The survey has also highlighted that 83 per cent of the respondents foresee an increase in the rate of growth of exports in the next six months. Of these (83 per cent), 43 per cent of the respondents expect the rate of growth of export to be between 0-10 per cent, 17 per cent respondents expect an increase in the rate of growth of exports between 10-20 per cent, while 23 per cent of the respondents expect it to be more than 20 per cent.
However, 17 per cent of the respondents expect a decline in the rate of growth of exports in next six months, the survey has revealed.
The survey has revealed a moderate impact on exports following the dismantling of the quantitative restrictions (QRs). It has revealed that 53 per cent of the respondents are concerned regarding the decline in their profit margins due to increase in competition. C P Rangachar, chairman, CII small industry council, said that despite procedural bottlenecks the outlook for exports is good.
The initiatives taken by the government such as the small business act, the draft of which was tabled at the small industry board, would provide an impetus for growth, the CII chairman added.
