'Impressive' export growth rate won't last: Ficci

High inflation and increasing interest rates will dent the growth rate of India’s exports according to a Ficci survey.

The Ficci survey comes a day after the government released trade data figures showing an impressive growth rate of 45.7 per cent during the April-June quarter of this fiscal.

The survey said that “While the last few months have seen the performance of India’s export sector surpass all expectations, this strong growth performance is not likely to be sustained in the months ahead”.

It said the end of the interest subsidy scheme for exporters happened at a time when lending rates were going up, adding that the impact on production cost structure is therefore aggravated.

It added that high levels of inflation in the Asian region would also see demand in the region likely to ease in the coming months.

The likely end of the popular tax benefit scheme - DEPB - in September has been cited as another factor that would put pressure on exporters to maintain their competitiveness in the global market. The rising cost of oil has also led to an increase in the inland transportation and international ocean freight rates.

Commerce Secretary Rahul Khullar also expressed concerns over uncertainties in the big markets of the US and Europe stating the “summer is not over”.

PTI