Appreciating Rupee may dent continuous robust exports growth: Ganesh Kumar Gupta, President, FIEO
Reacting to the appreciating rupee, FIEO President, Mr Ganesh Kumar Gupta said that the stronger rupee is definitely good for the economy and reflect the inherent strength of vibrant Indian economy. However we strongly feel that some support to exports is the need of the hour. Rupee appreciation to the tune of 6-7 percent during the last two months has come as setback for the exports sector. It not only reduces the competitiveness of the exporters in the international market but also in a big way impact the overall exports of the country as we are in price sensitive segment of exports.
FIEO Chief said that the Federation will soon raise concern of the export sector with the Ministry of Commerce & Industry and Finance urging for the immediate support for the sector both in the short and medium terms.
Mr Gupta is of the view that certain incentives in the form of Interest Subvention, being given to the manufacturers, may be extended to merchant and various other sectors of exports. Moreover, higher MEIS across sector of about 3 percent can somewhat offset the losses on account of rupee appreciation and further boost exports in such challenging times. FIEO President further expects that if the currency appreciates in such a manner rupee will be in the range of around Rs 62 to a dollar in the next 3-months period.