'Rising rupee to increase exporters profit by 12-15 pc'
Industry body Assocham said strong rupee against dollar will increase the profit margins of India Inc between 12-15 per cent in long run as exporters are bringing in new technologies with cheaper imports for expanding their existing capacities.
By PTI |
NEW DELHI: Industry body Assocham said strong rupee against dollar will increase the profit margins of India Inc between 12-15 per cent in long run as exporters are bringing in new technologies with cheaper imports for expanding their existing capacities.
"The sectors that are likely to gain a great deal with rupee becoming stronger include petro and petro products, engineering goods, gems and jewellery, drugs as these have imported inputs," Assocham President Venugopal Dhoot said in a statement while releasing a report on "Impact of Rupee Appreciation on India's Exports vis-a-vis Economy" on Thursday.
The major impact of rupee appreciation so far has been agro and food processing, auto and auto components, leather and leather products and cotton, textiles and apparel sector, he added.
The chamber has recommended in its report that if companies are able to expand their capacities in the rupee appreciating scenario, they would have positive benefits in the long run because demand for Indian products in developed countries is not going to slowdown.
The Indian Inc. would be able to export more at very competitive prices as a result of capacity building through technological advancement and increase its margins by 10-15, it said.
"The sectors that are likely to gain a great deal with rupee becoming stronger include petro and petro products, engineering goods, gems and jewellery, drugs as these have imported inputs," Assocham President Venugopal Dhoot said in a statement while releasing a report on "Impact of Rupee Appreciation on India's Exports vis-a-vis Economy" on Thursday.
The major impact of rupee appreciation so far has been agro and food processing, auto and auto components, leather and leather products and cotton, textiles and apparel sector, he added.
The chamber has recommended in its report that if companies are able to expand their capacities in the rupee appreciating scenario, they would have positive benefits in the long run because demand for Indian products in developed countries is not going to slowdown.
The Indian Inc. would be able to export more at very competitive prices as a result of capacity building through technological advancement and increase its margins by 10-15, it said.
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