The Hindu : Business : Kamal Nath takes up exporters’ cause

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Wednesday, Mar 05, 2008
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Kamal Nath takes up exporters’ cause

Special Correspondent

The Commerce Ministry is looking at ways to counter the challenge of rupee rise

NEW DELHI: Union Commerce and Industry Minister Kamal Nath on Tuesday met Prime Minister Manmohan Singh and briefed him about the current situation in the export sector and the hardships being faced by exporters due to sharp rise in the rupee value.

Without giving any details of his meeting with the Prime Minister, Mr. Kamal Nath said it was not just about the budget (regarding relief to exporters). Constant rise in the rupee value against the dollar had left Indian exporters worried, particularly those involved in the labour intensive sectors like textiles, handicraft, leather and marine products.

They were worried over the competitiveness in the global market and losing their contracts to other nations, he added.

Mr. Kamal Nath is reportedly unhappy over no major relief package for exporters in the budget proposals for 2008-09. He has been receiving representations from various export organisations seeking some relief on account of stronger rupee vis-a-vis dollar that has been hurting the profitability and competitiveness of the export sector over the past several months.

Trade organisations, particularly the Federation of Indian Export Organisations (FIEO), have been demanding immediate fiscal measures from the Centre.

Since the export sector had done well over the past few years and grown at double the pace of the GDP growth, the Commerce Ministry was concerned over the sector and was looking at ways to counter this challenge, the Minister said.

Mr. Kamal Nath, however, said he had no reservations on the loan waiver package for farmers announced in the budget

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