Exports Drop 10-12% Edge, Says Ficci Report

New Delhi: Exports in 11 sectors, including textiles, garments, and electronics, which comprise 50% of the country''s total exports, have become less competitive by 10-12 per cent, according to a study by Ficci. The study, submitted to the National Manufacturing Competitiveness Council (NMCC), attributed this to the rising rupee and hardening interest rates. Readymade garments, which constitute 8.2 per cent of exports, lost price competitiveness by 8-15 per cent, the study says. Between April and May, the fall in exports was 20-50 per cent. The profit margins in the sector are likely to be hit by 2-5 per cent, the study notes. Textile exports lost price competitiveness by 8-10 per cent and dipped by 25-40 per cent between April and May. Chemicals, which contribute 8 per cent to the export basket, became costlier by 7-8 per cent due to the rising rupee. The export turnover of the sector during April-May could be down by 11-6 per cent, said the study. Exports from the electronics sector during April-May are likely to fall by 25 per cent.