Exporters’ body FIEO has cautioned the exporters to guard themselves against excessive volatility and hedge their currency risk rather than swayed away by depreciation of Rupee.
The depreciation of Yuan, if happen further, may impact expected growth in exports from November, 2015, said S C Ralhan, President, Federation of Indian Export Organisations (FIEO).
Reacting to the trade data for the month of July exhibiting 10 per cent decline, FIEO Chief said that lowering of decline in July itself is a good sign and going by increase in container traffic in first fortnight of August.
He expects these results to move northwards for the month of August and subsequent months.
“The improvement in manufacturing for the month of June from 2.9 per cent in 2014 to 4.6 per cent in 2015 will also support exports in coming months as there is a lead time between manufacturing growth and exports,” he said.
US also posted 2.7 per cent GDP growth in second quarter with very low unemployment numbers which is good sign for global economy.
President FIEO said that improved performance of Gems & Jewellery, Pharma, Apparels, Plastics and Engineering sector is very encouraging but he is concerned with decline in most of agricultural commodities, fruits and vegetables, marine and leather as these are high employment intensive sectors.