Exporters should change biz models,cut dependence on govt: Survey
Indian exporters, who battled an appreciating rupee through 2007-08, need to make mammoth adjustments in their business modules
By PTI |
NEW DELHI: Indian exporters, who battled an appreciating rupee through 2007-08, need to make mammoth adjustments in their business modules, besides reducing dependence on government support to enhance their global competitiveness in the current fiscal, a survey has said.
In a survey by Assocham and tradeindia.com, a majority of respondents felt that instead of looking for support from the government, exporters need to study details of changing designs, product development, production facilities and techniques to increase their competitiveness vis-a-vis other nations.
Exporters need to make large-scale adjustments in their business modules as well as streamline operations and study global market expectations, it added.
"The exporters need to adopt mechanisms like forward contracts, shift to other currencies and establish protective clauses in their contracts to safeguard their interests," the chamber said adding that exporting to regions such as West Asia and European Union can partially help nullify the impact of a strengthening Indian currency.
Most respondents were of the opinion that given the changing world scenario, products exported to countries need to change too according to the changing consumer taste and trends, chamber President Venugopal Dhoot said.
Exporters also felt that the export target for 2008-09 can be met if the export sector works in accordance with the changing market trends.
Appreciation of the rupee by more than 9 per cent during April-January 2007-08 led to reduction in realisation of export orders.
Over 67 per cent of the respondents said the government's decision to extend the Duty Entitlement Pass Book (DEPB), coming at the beginning of the fiscal, would give the much-needed relief to exporters.
The DEPB scheme should be extended till 2010 when the Goods and Services tax (GST) comes into effect. However, with the scheme being seen as WTO-incompatible, the government would soon have to find an alternative, it said.
Exporters further suggested that the problem of congestion and pilferage at ports should be tackled on war-footing for sustaining export growth.
In a survey by Assocham and tradeindia.com, a majority of respondents felt that instead of looking for support from the government, exporters need to study details of changing designs, product development, production facilities and techniques to increase their competitiveness vis-a-vis other nations.
Exporters need to make large-scale adjustments in their business modules as well as streamline operations and study global market expectations, it added.
"The exporters need to adopt mechanisms like forward contracts, shift to other currencies and establish protective clauses in their contracts to safeguard their interests," the chamber said adding that exporting to regions such as West Asia and European Union can partially help nullify the impact of a strengthening Indian currency.
Most respondents were of the opinion that given the changing world scenario, products exported to countries need to change too according to the changing consumer taste and trends, chamber President Venugopal Dhoot said.
Exporters also felt that the export target for 2008-09 can be met if the export sector works in accordance with the changing market trends.
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Appreciation of the rupee by more than 9 per cent during April-January 2007-08 led to reduction in realisation of export orders.
Over 67 per cent of the respondents said the government's decision to extend the Duty Entitlement Pass Book (DEPB), coming at the beginning of the fiscal, would give the much-needed relief to exporters.
The DEPB scheme should be extended till 2010 when the Goods and Services tax (GST) comes into effect. However, with the scheme being seen as WTO-incompatible, the government would soon have to find an alternative, it said.
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Around 69 per cent of the respondents supported the government's move to push for Free Trade Agreements (FTAs). However, a thorough review of India's FTAs needs to be incorporated. "With no breakthrough in WTO trade talks, FTAs can help integrate India into global trade," Assocham said. Exporters further suggested that the problem of congestion and pilferage at ports should be tackled on war-footing for sustaining export growth.
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