Rupee fall doesn’t boost export always: EEPC
The depreciation in value of Indian rupee has been touted as beneficial to exporters, but this might not be the case always, according to Engineering Exports Promotion Council (EEPC) India.
Published: 04th September 2018 03:50 AM | Last Updated: 04th September 2018 06:14 AM | A+A A-
Image used for representational purpose only. (File photo | Reuters)
KOLKATA: The depreciation in value of Indian rupee has been touted as beneficial to exporters, but this might not be the case always, according to Engineering Exports Promotion Council (EEPC) India.
EEPC on Monday said the currency volatility needn’t always bring benefits to exporters. “Our view has been that it is a stable currency that helps exporters, providing them with predictability of dealing with the buyers. Any fluctuation and volatility on either side does not help,” EEPC India chairman Ravi Sehgal said.
The council said India’s engineering export growth shrunk to single digit at 9.4 per cent in July, from sharp increases in the previous few months even as the rupee was depreciating against the US dollar. It was a demonstration that a stronger dollar is not the only growth driver and does not always lead to export momentum, EEPC India said.
“Rupee depreciated more in July (6.56 per cent) as compared to June (5.19 per cent). But did exports grow at a higher rate and was there a currency depreciation advantage? No, exports in July this year expanded at a lesser pace of 9.37 per cent than 14.17 per cent in June,” said an EEPC official.
