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2011-07-11

Inflation may affect growth momentum

It said that a series of factors and developments are weighing heavily on the exporters'' fraternity making them a little less confident about their near-term export performance.

Nation's exports may lose its growth momentum because of high inflation and increasing interest rates, said FICCI in a survey on Sunday.

 

The apex industry body FICCI released the findings of the survey a day after the government released the trade data showing an impressive growth rate of 45.7 percent to USD 79 billion during April-June quarter of this fiscal.

Survey said, "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 that a series of factors and developments are weighing heavily on the exporters'' fraternity making them a little less confident about their near-term export performance.

The end of interest subsidy scheme for exporters has pushed the interest rates being charged by banks for export credit. The scheme ended on March 31.

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