Expressing concern over the rupee strengthening against the dollar, knitwear exporters of Tirupur on Monday sought immediate intervention of the RBI to arrest the domestic currency's gains.
In a letter to RBI Governor Raghuram Rajan, Tirupur Exporters' Association (TEA) president A Shaktivel said "the rupee has been gaining against the dollar on a day-to-day basis and touched Rs 58.57 on Saturday and is widely expected that the gain will continue in the coming days also."
Knitwear exports have regained the growth only last year after facing challenging times in the previous four years, Shaktivel said, adding that exporting units, mostly SMEs, have regained business confidence and been putting maximum efforts to sustain and increase shipments.
The main competing country China is maintaining there competitive advantage by calibrating their currency, while Bangladesh, being a least developed nation, has advantage of a zero customs tariff in European market, he said.
The appreciation of the rupee against the dollar would upset the apple cart of Tirupur knitwear export units and lose its competitiveness in the tough global market, Shaktivel said, adding the apprehension was that the new situation may trigger to derail the last year's rebound growth trajectory and continue sustenance of exports in the global market.
Source:- economictimes.indiatimes.com
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