India is likely to miss the export target of $200 billion for the current fiscal owing to slowdown in the US and European markets, restriction on shipments of many commodities and higher fuel prices, a survey by industry body FICCI said. The study said the rise in oil prices is likely to get reflected in exports as well as the higher fuel prices has led to a hike in ocean freight rates, prompting importers to source from closer production units.
Foreign buyers are showing preference to source from closer production points to save on the freight costs. If this trend gains momentum then domestic exporters would have to reorient their market strategies.The buyers in the US are considering increasingly sourcing from the markets of Canada, Mexico and other Latin American countries due to export restrictions in India.Indian has banned exports of pulses, edible oil and non-basmati rice, besides it has hiked export duty on long steel products to 15 per cent.
Foreign buyers are showing preference to source from closer production points to save on the freight costs. If this trend gains momentum then domestic exporters would have to reorient their market strategies.The buyers in the US are considering increasingly sourcing from the markets of Canada, Mexico and other Latin American countries due to export restrictions in India.Indian has banned exports of pulses, edible oil and non-basmati rice, besides it has hiked export duty on long steel products to 15 per cent.
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