India's exports, which is recovering after being battered by the global crisis, still need fiscal incentives as increasing shipments from China may once again push the exporters into a rough patch, a Ficci survey said.
"The scenario is such that exporters are expecting support from the government as the Chinese are getting massive support for their export growth," Ficci President Harsh Pati Singhania said in a statement today.
About 80 per cent of the respondents said any premature withdrawal of stimulus may weaken exporters standing in the highly competitive international market.
Ficci said with the global recovery in its initial stages, the government should watch the export performance in 2010 before taking a call on stimulus measures for exporters.
"There is a clear apprehension that given the appreciation of the rupee and the continuous efforts being made by the Chinese to encourage their exports, Indian exporters may again run into a rough patch," it said.
China overtook Germany as the world's biggest exporter in December 2009. The rupee has appreciated about 4 per cent against dollar in the past six months.
The government had given sops like interest subsidy and incentives to explore new markets to exporters in wake of global demand slowdown.
After falling for 13 straight months, exports grew by 18.2 per cent in November 2009. Exports growth was 9.3 per cent in December 2009 and 11.5 per cent in January.
Source : Business Standard