With western market taking a hit, small and medium scale entrepreneurs have started looking to focus on domestic market and other Asian countries.
“This year 30-40 per cent of our orders are from domestic market. Export market has become some sort of congested. We have to face a lot of competition from Vietnamese and Chinese goods,” said A.S. Joshi, Managing Director of Qualimech Engineers Pvt Ltd, which supplies guide rollers to industrial houses in western countries.
Jacob Crasta, Chairman of CME group that export environment simulation products to auto and defence industries in Europe and US, said, “We have started looking towards Asian countries like Malaysia, Korea, Vietnam and Singapore. Being an exporter, local market is not a substitute. Domestic market is already very crowded. So we look for other Asian markets”.
Alama Prabhu Burji of Burji Speed On Clutches that export mechanical components to bigger industrial units in UK, China and Sweden, said, “For last 10-12 months, exports are down. Though overseas market is down, I can’t focus on domestic market. The Indian market is very congested and there is an unhealthy competition. I will have to under quote to gain foothold in domestic market”. He sighs that he can’t do anything but have to face loss.
The Indian rupee’s fall has come as a silver lining for the exporting community, but these exporters feel otherwise.
Joshi said, that despite the rupee fall, exporting goods is still daunting. “Banks absorb 20 to 30 paisa per rupee. We never get the value of terminal rate”. To that Prabhu added, “yes, there is fall in rupee, but overseas buyers are intelligent enough to bargain hard with us”.
While the rupee fall has been a boosting factor for exporters, Crasta, said, “60 to 70 per cent of our raw materials are imported. Then cost of value of addition is high. Interest rates and taxes are also high. Tell me how can our goods be competitive in international markets”. So rupee fall is hardly a saving grace for exporters like him.
By – Sameer Ranjan Bakshi
