Indian exports 'to remain strong'

September 03 2008 | Category: India: Economy and finance

Any possible downturn in India's exports are likely to be limited, it has been claimed.

The Economic Times reports comments made by Tushar Poddar, vice president of Asia economic research at Goldman Sachs that any downturn is likely to be stemmed by a number of factors.

Firstly, he claims almost two-thirds of Indian exports go to regions outside the US and European Union, meaning that they are less likely to be affected by a downturn in these regions.

Secondly, he added that India's fastest-growing export products are raw materials such as iron ore, metals and refined petroleum which see strong demand from Brazil, Russia and China as well as the Next-11 nations.

Mr Poddar went on to say exports will also be helped by a weaker rupee in 2008.

"We argue that even though some moderation in exports growth is inevitable, the downside is limited," he added.

Last week, the Economic Times reported India is emerging as one of the most popular destinations for overseas investment.
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