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Indian exports dip
By siliconindia
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Monday, 16 April 2007, 19:30 IST
The recent appreciation in the rupee, registering the strongest values in 9 years, has seen India's exports growth rate decline significantly to single digits.
President of the Federation of Indian Exporters Organization Ganesh K Gupta said in a statement: "The appreciation has started taking its toll on exports. After growing by about 24 per cent in April-November Â06, export growth has slipped to single digit."
The rupee has already appreciated by about nine per cent between August 06 and April 07; it was valued at 42.165 against the dollar as of 2:09 p.m. today in Mumbai, according to data compiled by Bloomberg. It reached 42.0325, the highest since June 1998.
Gupta said that the rise has already eaten into whatsoever small margins remain in the competitive field of exports. The situation is likely to worsen further as the current exports are in discharge of already executed contract which needs to be fulfilled.
He said exporters are shying away from entering into new contracts; the booming retail sector seems to be an easy option for them instead. He also expressed hope that the exporters concerns would be addressed by Commerce and Industry Minister Kamal Nath. He also expressed hope that the Reserve Bank of India would look into the issue in the forthcoming credit policy.