“If the Centre fails to curb rupee appreciation immediately, export units will be forced to shed eight million jobs”
CHENNAI: The Federation of Indian Export Organisations has urged Chief Minister M. Karunanidhi to help the sectors affected by the appreciation of the rupee against the dollar.
In a letter on Monday, FIEO Southern Region vice-president and chairman A. Sakthivel urged the Chief Minister to take up the issue with the Prime Minister and the Union Finance Minister and ensure announcement of immediate relief.
Otherwise, within six months, the country would face labour unrest due to layoff in textile, leather and information technology units. If the Centre failed to curb the rupee appreciation immediately, export units would be forced to shed eight million jobs.
Suggestions
Mr. Sakthivel, who is also Member of Special Task Force for Industrial Development, suggested that the interest rates on packaging credit be brought down to six per cent, exports exempted from service tax, fringe benefit taxes on exporters be waived and high transaction costs, octroi and other levies be compensated through a relief package.
Small firms hit
“Right now, only the small firms are affected in the leather sector. If the trend continues, big factories will also put up the shutters, resulting in a huge loss of employment. In the IT sector, big firms have called for slowing down the rate of salary hike,” he said.
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