The government today said it was not in favour of providing succour to insulate exporters from a rising rupee, saying it can, at best, be a short-term answer and prescribed improvement in productivity as the lasting solution.The Mid-Year Review of 2007-08, a document that reviews the outcome of the budget proposals, said concessions were aimed at providing relief to exporters, particularly those who have been affected more by the rupee appreciation adjusting to which may not be possible in the short-run. "However, medium and long term solutions lie in improving productivity and becoming more competitive," said the document tabled in the Parliament today.The Indian currency has appreciated 9.7% against the US dollar, the main invoicing currency for trade, between April 3 and November 20 this year. It has risen 15.1% in the 12 months from October 2006.The document, however, said there was no one-on-one relationship between rupee appreciation and exports. "Relative appreciation of the currencies of major competitors, import intensity of the major export sectors, combination of exchange rate and inflation reflected in real effective exchange rates, and slowdown in growth of world economy/world trade affect exports," the review said.
