Competive currency must for growth in exports: Ajay Bodke

In a chat with ET Now, Ajay Bodke of Prabhudas Lilladher shares his views on exports.

ET Now: If rupee appreciates, most of the exporters will report a sequential drop in a big margin erosion. Is it too early or perhaps too risky to buy into exporters?

Ajay Bodke: Absolutely not, in fact it was a mistake that the Indian economy made when we had a torrent of large inflows a few years back and we allowed the rupee to appreciate to 48-49 had dealt a deathblow to the Indian export sector.

The improvement in the current account deficit to start within June-July was based on a double digit growth of exports, and also the fact that we had scuttled illegal gold imports. But, over the last two months a worrisome trend of exports becoming negative again is resurfacing.

That's why, both principal opposition and the ruling party in their manifesto have said that on a sustainable basis they would like to control CAD by ensuring that the exports are given a leg up. The way exports can be given leg up in addition to other factors is by making the currency more competitive.