July 18, 2013
New Delhi: Amidst volatile rupee, exporters today asked the government to take measures, including providing sops, bringing down transaction costs and implementing flexible labour laws, to boost trade.
The Delhi Exporters Association (DEA) said the weakening rupee is adding to the woes of exporters already hit by low demand in key western markets like the US and Europe.
The association said it has asked the government to intervene, especially, at a time when the rupee has been falling.
"We have made an appeal to Prime Minister Manmohan Singh to intervene in the on-going rupee volatility which has led to devaluation and restore Indian currency to its past glory," DEA President Tilak Raj Manaktala said.
"Continuous fall in rupee value vis-a-vis the dollar. In this about 97 percent of India's international trade is conducted and it is a grave matter. It is an economic crisis like situation...," he added.
The government should focus on reactivating the Micro, Small and Medium Enterprises (MSMEs) particularly the export related segment which needs support and the best is to incentivise them, the association said.
Besides, it said there is a need to amend the labour laws according to today's economic scenario, if India has to compete with the rest of the world.
The rupee extended losses for the second day, dropping 33 paise to 59.67 against dollar, after Fed's comments strengthened the US currency and RBI could drain only a fifth of its Rs 12,000-crore target in an auction to curb liquidity.
India's exports were down by 1.41 percent at USD 72.45 billion in April-June period this fiscal over the same period last year. However, imports during the period were up by 5.99 percent at USD 122.6 billion.
The country's exports in 2012-13 declined 1.76 percent to USD 300.6 billion mainly on account of slowdown in the global economy. In 2012-13, India's trade deficit had touched an all time high of USD 190.91 billion compared to USD 183.4 in the previous fiscal.
Source:-zeenews.india.com
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