Exports small, medium scale units on the rise: CII

NEW DELHI - Exports from micro, small and medium enterprises (MSMEs) are on the rise despite the rising cost of raw materials and stiff global competition, says the Confederation of Indian Industry (CII).

According to the CII MSME Outlook Survey on Exports, 42 percent of respondents said their exports rose over the past six months, 49 percent saw a decline while there was no change for the remaining 9 percent.

The principal findings of the survey released here Sunday were based on responses from a broad spectrum of industry groups and MSME members of CII.

India’s exports during November rose to 18.2 percent after 13 successive months of decline since October last year. Industrial production, too, was up by a robust 10.3 in October.

The CII survey was undertaken to analyse the actual export performance of the MSMEs during the first half of 2009-2010 to understand the future export prospects and plans during the second half.

“This is besides identifying key factors that are limiting exports, and the emerging export markets for the Indian MSMEs, CII said in a statement.

The survey said 50 percent of respondents expected an increase in exports between October 2009 and March 2010, 15 percent foresaw no change, while 35 percent believed their volumes would decline.

The key limiting factors for export orders over the next six months for MSMEs are rising cost of raw material, international competition, price competitiveness and delay in payments, CII said.

It also noted that the top five regions for exports by MSMEs are Europe, North America, South East Asia, Middle East and the Far East.

“The majority of respondents foresee Europe and North America as growing market for their exports, said CII National MSME Council chairman Salil Singhal.

According to Singhal, the export growth was a “positive shift” and may be attributed to the trickle-down effect of the stimulus packages announced by the government between last December and this January.