Improvement on Export Front in Sight: FIEO

Despite the negative trading environment prevailing in the global market, the Federation of Indian Export Organisations (FIEO) is optimistic that exports will improve from July 2009.

Though exports for March 2009 showed sharp contraction for the sixth consecutive month since October 2008, falling by 33.3%, the FIEO is hopeful that the situation will gradually improve for SME exporters.

Commenting on the export growth clocked during March, President of FIEO, A Sakthivel, said, "The export volumes for most SMEs in the January-March quarter have been poor due to the weak demand in traditional markets of the US, Europe and Japan. However, the worst phase is behind us and we will see improvement from July onwards."

"The international buyers are once again showing interest in Indian B2B Products and services. We are receiving consistent enquiries from overseas buyers for Indian goods. On the basis of such indications we expect the export market improvement trend to start from July," Mr Sakthivel added.

The FIEO expects exports to touch $185 billion in 2009-10, rising by 10% over last year's Export.

"The demand will rise in the coming months as inventories of buyers in Europe, UK and US will be over by June-July this year. Increased overseas demand will drive the export volumes for SMEs in this sector. Diversification of Indian exporters to new markets like Africa, Latin America and Asia is also likely to help the domestic export sector to recover and post better results," said OP Agarwal, proprietor of a mid-sized tea exporting company in Kolkata, AMBO Exports.

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