Stronger rupee Vs weaker exports

21 Jun '07

9 min read

The Government should take immediate corrective measures to manage the currency exchange rate fluctuations by adopting effective exchange rate management policy. Re-adjustment of rupee is, therefore, imperative to protect the long term interest of exporters. The RBI should immediately intervene in the currency market to curb undesirable movements. The Government should take positive steps to reduce the transaction cost thereby lending a fresh impetus to the industry to improve its competitiveness in the international market.

"In a fast growing economy like ours conflicts between national interests and sectional interest can always be resolved. There are numerous sectoral, political and economic interests and when we are working within the framework of democracy, the commitment to the declared objectives of the Government may not be very firm. Matters can turn worse when there is a coalition government with various pulls and pressures. Our export promotion policies are a case in point."

"It cannot be disputed that export promotion is absolutely necessary for self-reliant growth. Our commercial, fiscal, monetary and budgetary polices, particularly in relation to exports, need to be dovetailed to a greater extent than hitherto for achieving our export objectives and for assisting our exporters."

Surinder Anand, Executive Secretary, Garments Exporters Association

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