Home / Knowledge / News / Textiles / Appreciation of rupee concerns Indian textile exporters
Appreciation of rupee concerns Indian textile exporters
19
Oct '10
The rise in the value of rupee against the US dollar has affected the textile exporters of the country. The value of rupee has increased by 6.3 percent over the past two months, after the foreign institutional investors (FIIs) have made their way to India. Around two months ago, the exchange value of rupee was equivalent to Rs 47 per dollar which dropped down to less than Rs 44 towards the end of last week and stopped at 44 levels.

The fall in duty drawback rates, rising yarn prices, decreasing accessibility of yarn in local market and the current surge in the value of rupee are causing serious challenges for the textile exporters. A special incentive of two percent has also affected the business potential of the Indian garment exporters. The apparel exports have gone down by seven to eight percent since April, 2010 and if the trend continues to prevail then the industry has to opt for serious measures. This situation could also affect the employment in the industry.

The Indian government has not taken any measure to fix the price of rupee, so far. The government can control the inflow of FII investments into the country and put some limit such as minimum one-year lock-in period for FII money. The delay of raw cotton export till January 2011 and the prohibition of yarn exports can help in meeting the domestic requirements of cotton.

The garment exporters have been instructed to raise the prices of their garments. The buyers are expected to accept the increased prices as most of the competing nations like Bangladesh, Vietnam and China have raised the prices of their textile products owing to the rise in cotton price in the global market. The exporters can book forward cover for their products on a month-to-month basis to get away from the uncertainties.

Fibre2fashion News Desk-India

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search