‘Exporters should utilise Rupee fall to up performance’
BY Agencies21 Aug 2013 11:18 PM GMT
Agencies21 Aug 2013 11:18 PM GMT
Exporters body Fieo said on Tuesday that the rupee depreciation has helped in increasing competitiveness of domestic exports as traders have registered over 20 per cent growth in order books. Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed asked exporters to use rupee depreciation to augment exports by cutting down their prices and out price their competitors.
'The rupee depreciation has imparted some competitiveness to exports which are visible in order book positions where we are seeing over 20 per cent growth across many sectors,' he said in a statement. He said that the country would easily cross the exports targets for the current fiscal and trade deficit will be much less as compared to 2012-13.
The government has fixed an export target of $325 billion for the current fiscal. In 2012-13, trade deficit touched an all time high of $191 billion.
The rupee on Tuesday made a smart recovery to close at 63.25 after hitting a fresh low of 64.13 against the dollar, helped by massive intervention by RBI. He also said that this is a temporary phase and rupee will strengthen in the coming months. 'Improvement in overall economic parameters in the US and modest growth in Europe in last quarter would help Indias exports which may clock by 20 per cent from October onwards,' he said.
However, engineering exporters body EEPC INDIA Chairman Aman Chadha said that rupee depreciation in rapid succession will not have major impact on the sector's exports.
'Engineering exports are based on long term
contracts and reworking such contracts takes time and the buyer also negotiates, so the net impact many a times is more uncertainty,' Chadha said. He said that when the main problem is lack of demand in global markets, such sharp depreciation will not have any major impact.
'The rupee depreciation has imparted some competitiveness to exports which are visible in order book positions where we are seeing over 20 per cent growth across many sectors,' he said in a statement. He said that the country would easily cross the exports targets for the current fiscal and trade deficit will be much less as compared to 2012-13.
The government has fixed an export target of $325 billion for the current fiscal. In 2012-13, trade deficit touched an all time high of $191 billion.
The rupee on Tuesday made a smart recovery to close at 63.25 after hitting a fresh low of 64.13 against the dollar, helped by massive intervention by RBI. He also said that this is a temporary phase and rupee will strengthen in the coming months. 'Improvement in overall economic parameters in the US and modest growth in Europe in last quarter would help Indias exports which may clock by 20 per cent from October onwards,' he said.
However, engineering exporters body EEPC INDIA Chairman Aman Chadha said that rupee depreciation in rapid succession will not have major impact on the sector's exports.
'Engineering exports are based on long term
contracts and reworking such contracts takes time and the buyer also negotiates, so the net impact many a times is more uncertainty,' Chadha said. He said that when the main problem is lack of demand in global markets, such sharp depreciation will not have any major impact.
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