This is the map of India, where currently India is considered one of the emerging economies, together with China that will give a strong competition to the western world economies.It has been reported that the Federation of Indian Chambers of Commerce and Industry (FICCI) conducted a survey from April to June 2010 to assess the impact of global economic recovery on Indian exporters. The survey involved 278 companies covering wide geographical and sectoral spread with their turnover ranged from US$100,000 to US$3 million.
The sectors covered by survey include automotive, food and food processing, fast moving consumer goods (FMCG), textiles, metal and metal products, heavy engineering, marine products, cement, paper, pharmaceuticals, chemicals and wood & wood products.
This is also one of the export/import activities in India, where the Giant Sealiners carrying containers of products for trade.The survey revealed that Indian exporters have again come under stress mainly due to the following factors:
- rising cost of raw materials;
- large scale variation in exchange rates;
- continued euro zone crisis; and
- risk of slowdown in exports to EU.
Over 88 per cent of exporters participated in the survey reported a dip in margin due to appreciation of rupee of:
- 12 per cent against US dollar in the past one year; and
- 18 per cent against euro since December 2009.
The large-scale rupee variation against US dollar and Euro has led to lower realisation for exporters.
This is one of the State Legislative in India, where India formulate their various laws in the House of Parliament for enable them to boost their economy.Indian exporters are being forced to hold back of consignments goods due to continued economic uncertainty in EU region such as in Greece, Spain, Italy and Portugal.
Exporters have to take temporary terminals for parking goods in the EU regions after buyers’ refusal to accept delivery.
Expectations for Export Performance in the Next Six Months
i. Export Condition:
(% Respondents)
Moderately/
Substantially Better Same /No Change Moderately/
Substantially Worse
Overall Export Conditions 56 28 16
Industry level export conditions 58 20 22
Firm level export conditions 51 29 20
Overall, about 56 per cent of the respondents expect better export conditions to prevail in the next six months, while 28 per cent feels no change and 16 per cent see worse export conditions in the coming months.
Decline No Change (% of Respondents)
Increase
(0-5%) (5-10%) (10-20%) (20-30%) (>30%)
February 2010 (11) (26) 18 18 19 7 2
June 2010 (17) (22) 24 19 12 4 2
iii. Export Destinations
About 60 per cent of the exporters expect that exports to European Union either to remain the same or to go down over the next six months.
This is the Taj Mahal of India, where the symbol of happiness in the growth of economy for Indian population.Country/Region (% Respondents)
Increase Same/No Change Decrease
Africa 61 39 0
USA 55 38 7
South East Asia 49 46 6
Latin America 46 46 8
EU 40 38 22
Middle East 38 38 25
SAARC 36 64 0
United Kingdom 36 46 18
UAE 35 46 19
China 22 74 4
Japan 14 77 9
Hard currency of India - "Rupees", where however, trades use United States dollars for the mean or medium of exchange for import export activities.Factors Affecting Exports
Factors Respondents (%)
Exchange rate 88
Rising cost of raw material 74
Weak demand in international markets 52
Increase in oil prices 48
Competitive environment 45
Cost of credit 32
Government procedures 30
Inadequate infrastructure 24
Government promotional schemes 24
Credit availability 14
Tariff/Non tariff barriers 12
Excess productive capacity 12
On Measures or Suggestions, India need to beat the effect of currency fluctuations, exporters have taken measures by:
- evolving dynamic pricing models built in sales contracts; and
- not converting dollar receivables into rupees.
Due to the huge of population in India, people are queing for certain services in India.Exporters also have suggested the government to take measures, including:
- bank loans at concessional rates;
- increase in duty drawback and duty entitlement passbook (DEPB) rates;
- export incentives; and
- early signing of FTA with EU.
Trains are tha main transportation for general population, however, currently we can see the aviation industry in India is booming due to the fact that many Indian are able to travel by air now.Observation based on these senario:
• India’s export in fiscal 2009-10 declined by 4.7 per cent at US$ 176.5 billion, as compared with US$185.3 billion in fiscal 2008-09.
• Exports turned positive in November 2009 after being contracted for 13 months between (October 2008-October 2009) due to slump in demand in traditional markets of United States, Europe and Japan, as a result of global economic slowdown.
• Export sustained positive trend for the seventh consecutive months since November 2009, with highest growth witnessed in March 2010 at 54.1 per cent.
• The government in the three stimulus packages has given some incentives for the exporters that helped them to get rid of contraction. These incentives include:
- incentives for market expansion; and
- easy lending rates.
This is one of the shopping complexes in one of the cities in India. • The government is aiming at achieving an export target of US$200 billion in the fiscal 2010-11.
• The target, however, seems to be difficult to achieve unless India constantly look for newer markets, as traditional markets like the United States and the European Union have failed to deliver since the economic crisis.
This scenario of condition in one of the cities in India is a normal situation.Salam..............................................................................................
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