Jaitley assures exporters on Re

The government assured exporters that it would initiate measures to check any adverse impact resulting from the strengthening of the rupee against the dollar.

Exporters, led by Federation of Indian Export Organisation (FIEO) Chairman M Rafique Ahmed, met Commerce and Industry Minister Arun Jaitley today and demanded that the government take adequate steps to help Indian exports maintain their competitive edge. They also asked the government to ensure adequate credit flow to exporters.

Jaitley said he would take up the matter with the finance ministry and the Reserve Bank of India (RBI) for necessary action.

Though Jaitley did not mention the kind of measures that he would propose, he said the government was sympathetic to the concerns of Indian exporters.

He also said the model code of conduct for the elections would not come in the way of any action to be taken by the Centre and the RBI.

The rupee, boosted by foreign investments, is already up 4.7 per cent against the dollar this year. It rose 5.2 per cent last year and 0.6 per cent in 2002.

Over the last few months, exporters have been demanding that the government step in to check any further appreciation of the rupee against the dollar.

The government, on its part, has argued that India maintains a policy of a market-determined exchange rate and the rupee's rise against the dollar is in line with a similar trend in most currencies.

However, exporters argue that with over 80 per cent of India's trade being dollar-denominated, their margins have come under severe pressure. The rupee has appreciated over 8 per cent in the last eight months.