Associated Chambers of Commerce and Industry of India (ASSOCHAM), a leading industry lobby has estimated that Indian exports are likely to fall short by about 20 percent in the next fiscal as against targeted value of USD200 billion.
Specifying the reason behind this shortfall, ASSOCHAM pointed out that the seven key export segments- textiles, apparel, gems and jewellery, diamonds, brassware, handicraft and leather- cumulative constitute the highest volume of India's export industry- have been hit hard due to global economic crisis.
The export trade association had targeted to achieve the collectively USD-200billion mark but due to rising recession in US, Europe, and Association of Southeast Asian Nations (ASEAN) – the major importers of Indian goods – and dollar depreciation along with rising coastal transport charges have together moderated the momentum of previous export.
Thus ASSOCHAM is estimating a downfall of USD40billion, 20% depreciation of total export target. Moreover, the mounting inputs and labour costs, poor power and infrastructure have made the manufacturing cost extremely high.
Stiff competition from the neighbourhood countries like China, Pakistan, Bangladesh and Bhutan has also made the path tougher for the Indian exporters.
The exporters have also demanded to provide the modern technical machines to confront the competition.
ASSOCHAM has also reported that exporters from other sectors like pharmaceutical and chemicals, heavy engineering, and metal and marine products, besides Fast Moving Consumer Goods (FMCG) are performing excellent and expanding their business in Middle East, South-East Asia and Africa.
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