Home / Knowledge / News / Textiles / Stronger Rupee erodes profitability of exporters

Stronger Rupee erodes profitability of exporters

24
May '07
Garments Exporters Association has expressed serious concern over the persistent and significant appreciation of the Rupee against the dollar by about 10% adversely affecting the growth rate and profit margin of garment exporters.

It seems the gloomy picture would continue for some more time if the Government does not take immediate corrective measures to manage the currency exchange rate fluctuations by adopting effective exchange rate management policy.

The Association has pointed out that neither the Annual Supplement to the Foreign Trade Policy 2007 nor the RBI Credit Policy for 2007-08 have provided any specific proposal or export promotion strategy to reverse the recent downturn in garment exports.

The Government has not given due consideration to various representations submitted by the garment exporters for grant of adequate commercial and fiscal relief to meet the new challenges of increasing international competition with the recent sharp appreciation in the value of the rupee.

The GEA has urged the Finance Ministry to take immediate steps in line with the recommendation of the Ministry of Commerce to exempt exports from Service Tax and grant adequate and necessary fiscal relief to compensate exporters for the financial hardships suffered on account of upward movement of Rupee against the dollar.

GEA has pointed out in this context that the withdrawal of various tax exemptions by the Ministry of Finance has adversely affected the export performance and consequently reduced the profit margin and competitiveness of Indian garment exporters in the international market. The hardening of rupee during the last nine months has added fuel to the fire, further aggravating the present crisis being faced by the garment exporters.


Must ReadView All

Pic: Shutterstock

Textiles | On 23rd Sep 2021

Global economic recovery continues but remains uneven: OECD

The global economy is growing far more strongly than anticipated a...

Pic: Shutterstock

Textiles | On 23rd Sep 2021

President Biden plays down probability of US-UK trade deal

US President Joe Biden has played down the chances of a post-Brexit...

Pic: Shutterstock

Textiles | On 23rd Sep 2021

ADB revises down Cambodia’s growth forecast, sees rebound in 2022

Cambodia’s economy is projected to grow by 1.9 per cent this year...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Footwear Industry, Footwear Retailers

Footwear Industry
Footwear Retailers

Still struggling to mop up higher sales

Textile Industry, Head honchos

Textile Industry
Head honchos

Luxury is not just about high prices but ability to create desire

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Shyam Gupta,

Shyam Gupta

Established by <b>Shyam Gupta</b> in 1978, Gargee Designer's (GD) offers...

 Natacha Defeche, Edana

Natacha Defeche
Edana

Since 1971, EDANA, the International association serving the nonwovens and ...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

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

Leave your Comments


September 2021

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


Advanced Search