Better times ahead, say Indian exporters

A majority of Indian exporters are expecting better months ahead as demand from big markets such as the EU and the US has improves, a survey by industry body Ficci says.

The survey said that around 64 per cent of the respondents said the overall export conditions had steadily improved as against the situation six months ago, with over 60 per cent saying their current order book size had improved as compared to the position in April.

Although, given the rising cost of raw materials and the appreciation of the Indian currency against US dollar are concerns, traditional export destination buyers have eased their demand for cheaper products thus improving margins for Indian exporters in last six months, according to the survey.

The survey said, the importers of gems and jewellery, handicrafts and textiles in EU and US were stocking up to meet expectations of a demand surge in the Christmas shopping season.

Metal products shipments have also been encouraging after the improvement of economic activity in certain areas of Europe while other export segments including seafood, houseware and furniture had also seen an improvement in the North American region, Africa and Middle East, according to the survey.

The Chinese currency appreciation against the US dollar, though, is not expected to leave any positive impact for Indian exports as Chinese products still enjoyed a huge price advantage.