Nath wants PM to soften impact of Re rise on exporters
With the continuously rising rupee squeezing exporters, commerce and industry minister Kamal Nath has written to the prime minister seeking his intervention for softening its impact on the exporting community.
By TNN |
NEW DELHI: With the continuously rising rupee squeezing exporters, commerce and industry minister Kamal Nath has written to the prime minister seeking his intervention for softening its impact on the exporting community.
“Commerce and industry minister Kamal Nath has written to Prime Minister Manmohan Singh expressing concern over the rising rupee and requesting his intervention,” commerce secretary Gopal K Pillai said at an ‘open house’ with FIEO.
Small exporters have already approached the Prime Minister seeking his help.
While the falling value of the dollar has impacted the profitability of all exporters, it is the small exporters who are suffering the most since they do not have enough resources for hedging their exchange rate risks.
Mr Pillai said the government was aware of the impact the appreciating rupee was having on exporters and measures to check its rise would need to be taken at the highest level. “People are aware at the highest level and something is being done. We will take action and it is of concern to us,” he assured.
The rupee has touched a nine-year high of Rs 40.55 to a dollar and exporters have seen their margins erode by 10%.
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On the issue of refund of service taxes for exporters announced in this year’s foreign trade policy, Mr Pillai said the specific notification would come in the next couple of weeks. “The notification will have a list of services on which tax would be refunded and the means of how it would be done,” he said.
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