FASI'Is concern over rise in rupee against US Dollar

The value of Rupee closed at 41.85 against the US Dollar on the 16th April,2007. It is expected to touch 41 or 40 per dollar soon. The Rupee's surge against the dollar alongwith spiraling inflation is expected to blunt the competitiveness of the exports particularly the exports from the Micro & Small Enterprises. This Federation(FASII) is concerned over the exports getting affected.

The Micro & Small Enterprises contribute about 34% to total exports of the country. Handicrafts, Leather Goods, Ready Made Garments, Agro & Processed Foods, Toys & Sports Goods, Glass & Ceramics, Engineering Products, Electronic Goods, Chemicals & Pharmaceuticals, Gems & Jewellery are some of the products exported by the Micro & Small Enterprises in India.

It is a fact that a good chunk of Indian Export is invoiced in term of US dollar. At the same time, some of the products like Engineering items, Chemicals etc are mostly import-based which are to benefit from the upward trend of Rupee's value. However, export of other products is likely to get battered. It is ardently hoped that the RBI will strike a balance with reference to exports and imports.

It is high time that the Reserve Bank of India intervenes to protect India's export particularly the export from the Micro & Small Enterprises as these enterprises cannot face the adverse trend without the Government/RBI's support.

PRESIDENT, FEDERATION OF ASSOCIATIONS OF SMALL INDUSTRIES OF INDIA,

23-B/2, NEW ROHTAK ROAD, NEW DELHI-110 005