Appreciation of Indian Rupee has led to loss of comparative advantage for Indian exporters and also has put pressure on margins through cheaper imports, said Mr Sunil Mittal, President CII, in a Press Release issued.
The Indian Rupee has appreciated by 11.8% in the last one year and the currencies of competing countries in the international export markets had appreciated at a much lower rate and in some countries their respective currency has depreciated.
Countries that are competitors to Indian exports in textiles, apparels and leather have a comparative advantage on the local currency front vis-à-vis US dollar as their respective currencies have appreciated at a lower rate than Indian Rupee.
Chinese Yuan has appreciated by 3.6%, Pakistani Rupee has appreciated by 0.3%, Bangladeshi Taka by 3.2% and the Sri Lankan Rupee has depreciated by 4.6% thus making Indian exports in this vital sector dearer since January 2007, said the CII President.
Similarly, in the case of steel, countries that are competitors to Indian exports such as China, South Korea and Thailand have a comparative advantage when compared to India due to lower rates of appreciation of their respective currencies.
South Korean Won had appreciated by 2.3% and Thailand by 10.4 % since January 2007. This is the case even in Auto components and places Indian steel and auto components exports at a disadvantageous position in the international markets, said the CII President.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
