The sharp fall in
Indian rupee to a lifetime low of 69.10 against the US dollar will not give an
extra edge to domestic exporters, but provide a level playing field in global
market, FIEO has said.
Federation of Indian Export Organisations (FIEO)
Director General Ajay Sahai said the development will not provide any additional
support to exporters as currencies of other emerging economies, including
China, too are depreciating.
"It will provide a level playing field to
our exporters. It will not provide a much needed support as India is not
singled out," Sahai said. But industry sources said it will not help the
established exporters since they would have entered into long term agreement on
India's exports grew 20.18 per cent to USD 28.86
billion in May -- the highest in six months, even though the trade deficit widened
to a four month high of 14.62 billion.US Dollars. During 2017-18, the exports
grew by about 10 per cent to 303 billion US Dollars..
The rupee has touched a lifetime low of 69.10
against the US dollar by plunging 49 paise in early trade on June 28 as rising
crude oil prices deepened concerns about the country's current account deficit
and inflation dynamics.
Consistent dollar demand from banks and
importers, mainly oil refiners, following higher crude oil prices kept the
rupee under pressure.
Global oil prices have climbed after the US asked
its allies to end all imports of Iranian oil by November.
Concerns over supply disruptions in Libya and
Canada also pushed prices higher.
Industry body PHDCCI said that the fall in rupee
against dollar is short lived, which is primarily driven by rising crude oil
prices, apprehensions of deepening trade war between the US and China, FPI
outflows and heavy month-end demand for the USD from importers and banks.
"Going ahead, exports growth is needed to be
strengthened with supportive export infrastructure in general and reducing
transportation costs in particular to revive the sluggish export growth
trajectory," it said in a statement.
Engineering Export Promotion Council (EEPC) said
that there should be stability in rupee movements so that it is possible for
exporters to price their contracts with some amount of certainty.
"Import intensity in engineering exports is
increasing and hence the yo-yoing of the Rupee in a very short period creates
pricing complications for engineering goods exporters," it added.