Rise of Re has hit exports this fiscal: Fieo

Federation of Indian Export Organisations (FIEO) has said the appreciation of rupee has hit exports this fiscal, thus eroding the competitiveness as well as profitability of the exporters.

The apex exporters’ body has convened a meeting shortly with the chairmen of all export promotion councils to present their views to the Commerce and Industry Minister and suggest steps to be taken by the Reserve Bank of India (RBI) and department of commerce to arrest the continuous erosion of profits. Exports in July dipped to 5.75 per cent, thus reducing the overall growth rate to 9.29 per cent during April-July 2003.

Imports, however, went up by 17 per cent in July and the total import growth in April-July was 22.73 per cent.

This has more than doubled the trade deficit as compared to the previous year, Fieo said in a statement. Blaming the appreciation of the rupee for the slump in exports, Fieo said cheaper imports have prompted Indian companies, who used to procure their requirements from within the country, to look for suppliers overseas, thus affecting the domestic manufacturing sector.