FIEO for measures to counter Re growth
FIEO seeks expeditious implementation of measures announced to counter appreciation of rupee.
By INDIATIMES NEWS NETWORK |
DELHI: Expressing concern over the further strengthening of the rupee to the level of 40.35, Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta stated that it has hit all exporters.
He further stressed that the lifestyle segment exporters are the most affected since they are to finalise their contracts by July/August for the coming festive season abroad.
The FIEO Chief requests expeditious implementation of measures announced to counter the appreciation of the rupee.
While detailing the sectoral impact, Gupta stated that textiles and apparels export industry have witnessed a decline of 8 to 10 per cent in their net profit margins which would force them to cut down costs in terms of employment and capacity building affecting the sector adversely in the long term. Leather goods sector, handicrafts and giftware are also substantially affected. Latest official data shows that export growth has slowed down to 18.07 per cent in May 2007 from 23.06 per cent in April 2007. In value terms exports during May totalled $ 11.86 billion.
The FIEO Chief stated that last month the Ministry of Commerce had been kind enough to give a hearing to the exporters and announced a package which needs to be implemented at the earliest to ensure that the export sector does not suffer any further losses which could have an adverse impact on the employment generation and other associated sectors of the economy.
Gupta added that the hardening of the rupee is eroding the competitiveness and profitability of exporters who are losing orders to China, Thailand, Pakistan, Sri Lanka, Bangladesh, etc and the measures announced may be implemented in the right earnest to ensure that the market of the Indian exporter is not lost to these competitors forever.
He further stressed that the lifestyle segment exporters are the most affected since they are to finalise their contracts by July/August for the coming festive season abroad.
The FIEO Chief requests expeditious implementation of measures announced to counter the appreciation of the rupee.
While detailing the sectoral impact, Gupta stated that textiles and apparels export industry have witnessed a decline of 8 to 10 per cent in their net profit margins which would force them to cut down costs in terms of employment and capacity building affecting the sector adversely in the long term. Leather goods sector, handicrafts and giftware are also substantially affected. Latest official data shows that export growth has slowed down to 18.07 per cent in May 2007 from 23.06 per cent in April 2007. In value terms exports during May totalled $ 11.86 billion.
The FIEO Chief stated that last month the Ministry of Commerce had been kind enough to give a hearing to the exporters and announced a package which needs to be implemented at the earliest to ensure that the export sector does not suffer any further losses which could have an adverse impact on the employment generation and other associated sectors of the economy.
Gupta added that the hardening of the rupee is eroding the competitiveness and profitability of exporters who are losing orders to China, Thailand, Pakistan, Sri Lanka, Bangladesh, etc and the measures announced may be implemented in the right earnest to ensure that the market of the Indian exporter is not lost to these competitors forever.
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