FM pulls up exporters for job cuts after Re rise

Finance minister P Chidambaram on Monday pulled up exporters for resorting to the shortsighted measure...

Finance minister P Chidambaram on Monday pulled up exporters for resorting to the shortsighted measure of retrenching jobs in the wake of fast appreciating rupee. Chiding exporters he asked them to adjust to the new rupee rate, cut costs, become innovative and live with low profits.

Speaking at a session organised by the Mumbai Regional Congress Committee, the finance minister said that the Centre was concerned over the appreciating rupee and would stand by exporters in this changing situation. “The rupee appreciation is a concern. The government has so far given three packages totalling Rs 5,000 crore to help the exporters and will continue to extend support. Exporters have enjoyed for last the 15-20 years. The government in 1991 had given the benefit of a dual exchange rate. It’s the time that now they should not to take shortsighted step of retrenching jobs, but learn to adjust to new rupee rate,” the minister added.

Citing turbulence the world over Chidambaram said that the country’s gross domestic product (GDP) is expected to take a beating and is estimated to be around 9 per cent by the end of this fiscal.

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Referring to the growth rate, the minister also highlighted the work done by the present Congress led UPA Government and gave credit to it for meticulously designing the policies that aided in the continuous rise of the country’s GDP. “Since the Congress led UPA government took over in May 2004, India had a GDP growth rate of 7.5 per cent, 9 per cent and 9.4 per cent. On an average the GDP growth rate was recorded at 8.6 per cent. However, due to the world turbulence I expect that the growth rate will be close to 9 per cent,” he said.

While replying to a query whether India can aim for a growth rate of 14-15 per cent, Chidambaram said, “I can happily settle for 10 per cent.” He explained that the target of 14-15 per cent GDP rate, is quite ambitious. To active such kind of target the country needs to have higher level of investments, savings and better investment capital output ratio.