Indian exports are poised for better growth this year: Madan Sabnavis, CARE Ratings
Synopsis
There would be that countervailing pressure coming on the import side too and there could be a further pressure on the trade deficit and current account .
Edited excerpts:
In terms of exports, I am quite sure that we will want it to be better because Indian exports are dependent on how the global economy performs and since some of the major regions like United States and European region are showing signs of a recovery, it is good news in terms of our exports.
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These are the two areas which would probably benefit from the rupee depreciation which you have seen. One needs to see how the other competing nations currencies also perform. That way, I would say Indian exports are pretty poised for better growth this year.
This could also go along with higher level of imports because we have seen crude oil prices strengthening. This also holds for other commodities especially the metals which we import. There would be that countervailing pressure coming on the import side too and there could be a further pressure on the trade deficit and current account along the way.
I do not think it has also been addressed fully. That is something which we are hoping would be taken care of during the course of the year. We should remember that the GST came in July.
Stocks Recommendations
It takes more than a year before things settle down. Exporters have definitely felt this problem. If you look at the balance of payments data, trade credit has been very important issue in terms of borrowing from outside. That should even out over a period of time but it is definitely a genuine concern in terms of trade finance.