New Delhi: India’s exports could fall or remain flat in 2009-10, as demand contracts in key markets, an industry survey released over the weekend showed.
The survey by the Federation of Indian Chambers of Commerce and Industry (Ficci) comes days after data showed India’s exports fell for the fifth straight month in February.
India’s exports, which form close to a fifth of its gross domestic product, have been falling since October as the global slowdown slashed demand for Indian goods, forcing the government to pare its export target for 2008-09 to $170 billion from the initial $200 billion.
The trade secretary last month forecast the country’s exports to be flat at $170-$175 billion in 2009-10, anticipating a revival in exports after June.
However, a majority of the exporters surveyed expect sectors like engineering goods, gems & jewellery, chemicals, marine products and tyres to see negative or zero growth in the current fiscal that ends 31 March 2010.
A weakening rupee has no major impact for exports, with a bulk of the respondents saying the sliding rupee had a only moderate positive impact on their businesses.
The rupee has fallen 3.8% against the dollar in the last two quarters.