Exports hurt by rising Re
The fast-rising rupee has hurt the competitiveness of Indian exporters, as currencies of competing countries made slower gains against the dollar, and in some cases even declined, a leading industry group said on Monday. "Appreciation of the rupee has led to loss of comparative advantage for Indian exporters and also has put pressure on margins through cheaper exports," the Confederation of Indian Industry (CII) said in a statement.
According to the CII, in the past year, the Chinese yuan had gained 3.6 per cent and Pakistan rupee rose 0.3 per cent, while the Sri Lankan rupee fell 4.6 per cent. In comparison, the partially convertible rupee had gained 11.8 per cent in the same period and its ascent had hurt export-oriented sectors like textiles, apparels, leather and information technology, it said in a statement.
India has an export target of $160 billion for the fiscal year ending in March 2008, but the target was unlikely to be met, a top commerce ministry official was reported to have said earlier this month, according to newspaper reports. The rupee was hovering near last week's peak of 39.27 on Monday, its highest since March 1998.
Source: The Economic Times
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