NEW DELHI : Rupee depreciation does not benefit exporters, instead, a stable currency is needed for long term sustainable growth of India’s international trade, industry body CII said recently.
In the present globalised environment, majority of costs like raw material, shipping charges, warehousing and other related services are denominated in foreign currency or at import parity price, the chamber said in a statement.
Besides, most of exporters do long term hedging at the time of booking of orders, while importers press for reduction in prices citing depreciation of rupee, it said.
“Hence, it is more of a perception than reality that depreciation of Rupee helps exporters. What is required is a stable range-bound currency which will give stability and certainty for quoting prices and accepting orders in today’s competitive global environment,” Chairman of CII National Committee on Exports and Imports Sanjay Budhia said.
In recent weeks, the rupee has taken a beating amid volatility in global markets and strengthening of the greenback. The Central Bank has been taking various measures to shore up the rupee.