New Delhi: India’s exports growth rate has declined significantly to single digits from about 24% in Apr-Nov 2006 due to the recent appreciation in rupee.
“The rupee appreciation has started taking its toll on exports. After growing by about 24% in April-Nov 06, export growth has slipped to a single digit,” Federation of Indian Exporters Organization President Ganesh K Gupta said in a statement here.
The rupee has already appreciated by about 9% between Aug 06-Apr 07 from Rs 46.50 to Rs 42.65 on April 9, 2007, he said, adding, it has already eaten whatsover small margins remain in the competitive field of exports.
The situation on exports front is likely to worsen further as the current exports are in discharge of already executed contract which needs to be fulfilled, Gupta said.
He said exporters are shying away from entering into new contracts with the booming retail sector seeming to be an easy option for them.
He also expressed hope that the exporters’ concerns would be addressed by Commerce and Industry Minister Kamal Nath in Foreign Trade policy while the Reserve Bank of India would look into the issue in the forthcoming Credit policy.