HLCM to draft exporters relief pack on 6th

NEW DELHI: Some relief for exporters, burdened by rising rupee and high interest cost, may be round the corner. The High-Level Committee on Manufacturing (HLCM), chaired by Prime Minister Manmohan Singh, would shortly meet to discuss ways to mitigate the woes of exporters.

Government is collecting feedback from the industry on the impact appreciating rupee and rising interest cost has had on different sectors. It has asked FICCI, CII and other industry associations for their input. The empowered sub-committee of HLCM will meet on June 6 to discuss the issue and prepare recommendations to tackle this.

The empowered sub-committee is chaired by National Manufacturing Competitiveness Council (NMCC) chairman V Krishnamurthy. MoS for Industry Ashwani Kumar, Planning Commission member Anwarul Hoda and secretaries of finance, expenditure and commerce are its members. The HLCM will meet a few days after the sub-committee’s meeting to decide on the course of action government needs to take.

Exporters in sectors such as textile, leather, plastic, chemicals, gems and jewellery, food processing and marine products have been badly hit due to rupee appreciation. It started hurting the bottomlines of many companies and many exporters are losing business, as a hardening rupee has rendered them uncompetitive in the international market.

Commerce minister Kamal Nath had earlier this week given indications that government would initiate measures to bail out exporters. Now the concern has moved up to the highest level in the government. In its meeting, HLCM would prioritise areas where actions are required.