Appreciating Rupee - DGFT to conduct survey
Has the continuing appreciation of rupee affected various industries in India? The Directorate General of Foreign Trade (DGFT) has decided to conduct a survey to find out the real impact of the strengthening of rupee and weakening of dollar, according to R S Gujral, Director General, DGFT. Already there was a decline in orders in the apparel industry thanks to rupee appreciation, he admitted.
There was a decline in seven sectors, including tea and apparel in July, while moderate drop in growth of several other industrial sectors was noticed in August.
Based on the survey, DGFT had suggested to the government to cut the interest rate further.
Though the commerce ministry had two months ago recommended an interest rate cut by four per cent, the finance ministry had announced only two per cent cut, he said.
He added, "We also seek exemption of service tax for 10 other categories besides the seven already announced."
Obviously he and his Minister don't cut much ice with the Finance Ministry!