He has also expressed concerns that the job cuts in the SME sector in the leather industry due to the reduction of work orders from big companies might soon move to the main factories with huge loss of employment.
"The hardening rupee has been one of the major focal points of the IT industry of late. A 14% appreciation in the last one year has made a serious dent on the global competitiveness of the Indian IT sector," he said.
FIEO has suggested measures like bringing down interest rates for packing credit to 6% having dual exchange rates. "For exports, a fixed exchange of 42 per dollar may be considered at least for a year."
FIEO has also suggested that exporters be allowed hedging at 42 per dollar, and the cost of hedging be met by the government.
"To compensate the high transaction costs, octroi and other levies, 4% on FOB value of exports may be given to exporters as a relief package. All service tax be exempted for exports and fringe benefit taxes waived for exporters."
