Rupee appreciation and losing jobs
After the Indian rupee went down below 40 against the dollar for the first time in nine years, the situation has become frightening as it has left several thousands workers jobless in the textile town of Tirupur.
President of Tirupur Exporters' Association (TEA), described the situation as 'alarming'. Last year the region earned Rs 11,000 crore for readymade garments and knitwear exports. A 20 percent growth was expected this fiscal, but it seems impossible as there are no fresh orders coming in. The knitwear exporters are completing the existing orders and some have no orders on hand. Out of the total workforce of 400,000, nearly 7,000 have already lost their jobs and more than 100,000 will lose their jobs if the situation doesn't improve, it is feared.
The TEA had asked the Prime Minister to help them come out of the crisis.
The Finance Ministry, in its recent notification, has given service tax exemption only to two services. The exporters want all services rendered by them to be exempted from the payment of service tax and also fringe benefit tax.