India's export to stay weak in FY17, says India Ratings

Country's export is likely to stay weak this fiscal as global economies struggle to stabilise, India Ratings and Research said on Tuesday.

"We believe that export performance is likely to stay weak in FY17, as globally economies struggle to stabilise," the agency said in a report here.

Apart from global demand, another major driver of the domestic export is established competitive advantage in specific sectors like refining, precious metals, pharmaceuticals.The rupee can act as an enabler for export revival but there is no strong linkages between the currency and trade performances, it added.

"Evidences of linkages between exchange rate and trade performance are weak and do not suggest a strong relation," the report said. The agency expects the rupee to weaken and trade at an average of 67.5 in FY17.

It further said the country's stance of calibrating its exposure both through exports' composition and destination has supported overall export performance. "In order to maintain its overall competitiveness, India's focus on infrastructural development is likely to have multi-linked benefits," it said.

Enabling private sector to enhance their cost competencies, infrastructure investment will also act as a trigger for domestic growth revival, it added.