Adjust biz with fluctuating rupee value, exporters urged

Ahmedabad, Sep 28 (UNI) Director General of Foreign Trade (DGFT) R S Gujral has advised exporters to adjust their business with the fluctuation in the value of rupee as the time has come for them to adjust to the new situation following world wide economic changes.

Mr Gujral was speaking as a chief guest at the open house on ''National Foreign Trade Policy'' organised by the Gujarat Chamber of Commerce and Industry and Federation of Indian Export Organisations (FIEO) in Ahmedabad today. He said so far exporters have always conducted their operation under the assumption of depreciation in value of rupee as compared to dollar.

While referring to various representation received from exporters, he said exporters should work out their export strategy keeping in mind preferential tariffs with various countries and profitable route of export. He advised the chamber and export organisations to provide useful help and guidance to exporters in this regard.

He said government is fully conscious about the importance of exports in the nation's economy. It provides valuable foreign exchange and decline in exports will lead to reduction in industrial production, closure of units which would increase unemployment.

Therefore, DGFT is always in the forefront to help exporters to resolve their problems.

The government is aware that there has been a reduction of 12 to 13 per cent in the profit of exporters following appreciation of rupeee and it has taken several steps to help them like providing cheaper export credit etc, he said.

Referring to the suggestion made by the Chamber President Paru Jaykrishna in her speech to impress the state government to exempt export production from electricity duty, he said all such proposals are on the discussion stage and the government is planning to provide some kind of rebate and a solution will be worked out before the announcement of the next export policy.

President of FIEO GK Gupta urged the DGFT to take up the matter of appreciation of rupee with the Reserve Bank of India to bring stability in its value. In order to stop exporters from shifting to domestic trade, he pleaded for exemption of exports from certain taxes for three years and removal of service tax.

UNI