New Delhi, Sept. 3: Small and medium enterprises (SMEs) expect a strong surge in exports over the next six months, a CII business outlook survey says.
The factors that are expected to play a crucial role in exports include cost of credit and procedural bottlenecks, price, delay in payments, increasing global competition, delay in port clearances, anti-subsidy and anti dumping duties levied by importing countries, exchange rate and non-tariff barriers.
A survey of approximately 65 per cent of CIIís SME members revealed that there has been a moderate impact on the exports following the dismantling of quantitative restrictions.
Moreover, 53 per cent respondents attribute their decline in profits to rising competition. The survey break-up reveals that 56 per cent of the respondents envisage an increase in volume of their exports, 34 per cent feel that market will be stagnant, while 10 per cent felt that there will be a decline in their exports.
However, the survey states that in value terms, 58 per cent of the respondents foresee export value to increase while 31 per cent expect it to remain the same. Approximately, 11 per cent of respondents expect it to decrease in the coming six months.
An encouraging factor is that 83 per cent are positive about an increase in the growth rate of exports over the next six months.