NEW DELHI: Micro, small & medium enterprises (MSMEs) in the country expect better growth in exports in the second half of the current fiscal ending March 2010, a survey conducted by industry body CII said.
According to the survey, half of the respondents to the survey said they expect an increase in volume of their exports in the second half of FY10, as compared to 42% who said they witnessed increase in exports in the previous survey six months ago.
Moreover, nearly half of the respondents in the previous survey that captured expectations for the first half of the year had said that they expected decline in exports during April-September 2009, but in the latest survey, just one-inthree said they expect exports to decline in October ’09-March ’10.
Exporters say they are looking forward to growth in both volume as well as US dollar earnings with over 50% of the respondents saying they expect dollar value of exports to grow in the second half. Among those who expect growth in dollar earnings, as much as 75% of the respondents expect over 10% increase in growth for the six months ending March ’10.
The survey also pointed that factors such as rising cost of raw material, international competition and price competitiveness may restrict growth in export orders for the MSMEs in the latter half of FY10.
The top five regions for exports by Indian MSMEs are Europe, North America, South East Asia, Middle East Asia and Far East Asia. Majority of those surveyed foresee Europe and North America to be the growing markets for their exports in the near future.
Source : The Economic Times