Is Everything Ok with Rise in Exports?
In addition to this, high global oil prices and a robust demand for capital goods in a growing economy are likely to widen the trade deficit, which I feel will be an area of concern in the coming weeks.
With the volatile rupee likely to continue appreciating, I expect a fall in the demand for Indian products in major export markets.
If the current situation prevails, then there will be a lot of pressure on the government which will have to find ways to provide more fiscal and monetary assistance to exporters.
I think the exporters have to be very cautious while looking for clients. I would like to reiterate that with the rupee remaining strong vis-à-vis the dollar, they need to find innovative ways to keep their goods globally competitive.
About the Author
Bikky Khosla is CEO of Tradeindia.com and editor Tradeindia weekly exim newsletter.