Fall of Rupee does not benefit much for exports: DGFT

BANGALORE: Depreciation in rupee against major currencies would not be of much benefit to exporters due to high import content in major shipments and volatility in markets, Director General of Foreign Trade said today.

"Fall in Rupee will not benefit much for exports because of high import content in our major shipments like pharmaceuticals, gems and jewellery," DGFT Anup K Pujari told PTI on the sidelines of an event here.

Stating that the commerce ministry is looking for a stable exchange rate, he said stability of the rupee would be good or business.

"Lower rupee or higher rupee does not bother, what is bothering is volatility. There should be stability; if there is volatility no one will know how to handle the uncertainty," Pujari said.

Asked what would be the right rate for good business, he said, "there is nothing called right rate. If it is not volatile our exporters will be able to handle."

Emphasising the need for a stable Rupee to good exports, he said there is no single solution for importers and exporters, irrespective of whether they are from small or large-scale industry.

"However, except for the last few days by and large our exchange is fairly stable," Pujari said.

Hoping that steps taken by the government by restricting gold imports would arrest the fall of Rupee, he said for those importing gold for export purpose there is no let-up.

"For anybody importing gold for export, it is completely as it was earlier," he said.