News and Events

The government is worried about the sliding value of the rupee against the dollar and is exploring newer ways to prevent it from sinking further. However, exporters’ mood, which should have been upbeat and spirited following the rupee’s fall, is no different. Ideally, a weakening rupee (it has fallen 20 per cent compared to the dollar in one year) results in gains for exporters, but, the actual scene is very different, says exporters. Exporters say overseas buyers realising the advantageous position of Indian exporters are pushing them to re-negioate on prices. S C Rehlan, Member, Engineering Export Promotion Council (EEPC) is one of the many worried exporter. He says buyers overseas are smart enough to realise the position of Indian exporters and hence negioate deals with them at competitive prices. Ashwani Goyal, President, Jagadhri Confeder-ation of Commerce and Industry adds exporters are not benefitting from the fall of the rupee. “Imports already have become costlier while volume of exports for the metal industry (non-ferrous) has gone down by 20 per cent. On top of that, the overseas buyers are demanding discounts from us.” Upkar Singh, member of Chamber of Industrial and Commercial Undertaking (CICU) says the Indian export is not competitive presently and India is losing grounds to China. “China is strengthening its export by improving quality and offering products at competitive prices. Chinese tax structure is also supportive to the exporters.” He said the Indian government should announce no income tax from export the next five years. This will definitely lead to an increase in export hence dollar inflow will increase strengthening the rupee. Ramesh Verma, President Haryana Exporter Manufacturers’ Association (HEMA), says the exporters are a not being benefited from the volatility in the currency. “We are looking for stability rather than volatility.”