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Appreciating rupee makes exporters apprehensive
18 Nov '09
2 min read
The rising rupee is leading to a feel of dismay in the textile and apparel exporter's community as it has come at a time when signs of a turnaround are visible in the key markets of the US and some countries of the European Union.
To add to the depression was the news that overall exports from country had fallen by a thumping 11.4 percent to US $12.5 billion in October.
The manufacturers and exporters in the textile and apparel industry are also fighting against the rising costs of raw materials, more particularly key raw materials like cotton, the prices of which have increased by 10-12 percent in recent days.
The rupee is quoting at Rs 46.22 to a dollar a surge of 14 percent from its record low of 52.20, which it touched in March and according to a few analysts, the exporters can expect far worse days as the rupee is expected to appreciate to Rs 45 to a dollar by the first quarter of 2010.
China which is one of the biggest competitors of India in global markets has fixed the exchange rate of the Yuan to the dollar which helps the exporters to bag more orders as they do not face uncertainty of a appreciating or depreciating Yuan.
Share of India in the worldwide apparel sector has fallen from a high of 3.3 percent to a dismal 2.6 percent in recent years and if the rupee appreciates as per predictions, the clothing sector could once again miss its export target for 2009-10.
To add to the depression was the news that overall exports from country had fallen by a thumping 11.4 percent to US $12.5 billion in October.
The manufacturers and exporters in the textile and apparel industry are also fighting against the rising costs of raw materials, more particularly key raw materials like cotton, the prices of which have increased by 10-12 percent in recent days.
The rupee is quoting at Rs 46.22 to a dollar a surge of 14 percent from its record low of 52.20, which it touched in March and according to a few analysts, the exporters can expect far worse days as the rupee is expected to appreciate to Rs 45 to a dollar by the first quarter of 2010.
China which is one of the biggest competitors of India in global markets has fixed the exchange rate of the Yuan to the dollar which helps the exporters to bag more orders as they do not face uncertainty of a appreciating or depreciating Yuan.
Share of India in the worldwide apparel sector has fallen from a high of 3.3 percent to a dismal 2.6 percent in recent years and if the rupee appreciates as per predictions, the clothing sector could once again miss its export target for 2009-10.
Fibre2fashion News Desk - India
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