Home / Knowledge / News / Textiles / Exporters taken by surprise with solid appreciation in rupee

Exporters taken by surprise with solid appreciation in rupee

May '07
While the Indian exporting community has welcomed the measures outlined in the trade policy announcement for 2007-08, its enthusiasm with regard to export performance in the near term has been severely dampened by the sudden and sharp appreciation of the Rupee seen during the last few months.

• The results of the present survey show that the incremental improvement in the outlook for exports seen in the last survey has failed to sustain itself despite the positive announcements made in the trade policy supplement for 2007-08.

• The strong and sudden appreciation in the exchange rate seen over the last few months has taken the Indian exporter community by surprise that was already reeling under the pressure of rising raw material costs and hardening interest rates.

• Participants in FICCI's current round of export survey have reported that exports in segments such as textiles, gems and jewellery, tea, spices, leather and marine products that contribute strongly to India's overall exports are extremely price sensitive and the recent movement in the Rupee's value has started impinging on their export performance.

• While on one hand the Rupee realization for the exporters is going down, on the other hand their margins are getting squeezed to the point where some of them are contemplating catering only to the domestic market for the time being.

• The most severely hit are the small and medium enterprises, which unlike large enterprises neither have the option of reducing their cost burden by resorting to external sources of finance like ECBs nor have the knowledge about how to safeguard and hedge their currency exposure using sophisticated techniques like the forward contracts.

Must ReadView All

Pic: Shutterstock

Textiles | On 16th Oct 2021

China's economic growth reflects strong resilience, vitality: Li

Premier Li Keqiang has said China is capable and confident of...

Pic: Shutterstock

Apparel/Garments | On 16th Oct 2021

BGMEA urges Bangladesh govt to reskill & upskill RMG workers

The Bangladesh Garment Manufacturers and Exporters Association...

Pic: Shutterstock

Retail | On 16th Oct 2021

UK retail sales rises by 0.6% in Sep 2021; figure 5.6% in Sep 2020

Total UK retail sales rose by 0.6 per cent in September this year...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

Textile Industry, Head honchos

Textile Industry
Head honchos

Switch was not 100% pandemic related

India-EU Summit, Representatives

India-EU Summit

India-EU FTA will provide EU with better access to a huge & rapidly...

Akram Tariq Khan,

Akram Tariq Khan

E-commerce brand YourLibaas meaning "garment or attire" in Udru, was...

Rajat Kapoor,

Rajat Kapoor

Seraphine is a British maternity brand providing affordable luxury fashion ...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Silverio Baranzano, Fitesa

Silverio Baranzano

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Anjali Bhaskar, Samatvam

Anjali Bhaskar

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj

Samshek is a fashion forward tech brand which combines digital experience...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2021

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

Advanced Search