FDI in real estate causing Rupee appreciation: Jairam

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Bangalore, Dec 28 (UNI) Huge funds flowing through foreign direct investment (FDI) in the real estate sector was causing Rupee appreciation that had made a negative impact on export-focused, labour-intensive industries like apparel, textiles, gems and jewellery, Union Minister of State for Commerce Jairam Ramesh said today.

Talking to reporters on the sidelines of the release of a new Arabica coffee plant variety 'Chandragiri', developed by the Coffee Board here, he said though Rupee appreciation had its benefits, it was causing concern to labour-intensive industries that were focused on exports. The short term sentiments in these industries were negative. To help these industries, the Union Government had announced three packages during the year, he added.

''Apparel, textile, handicrafts and to some extent gems and jewellery industries are facing problems due to Rupee appreciation.

Huge inflow of Dollars into real estate sector is the main cause for this. So, there should be some regulation on FDI in real estate. The Finance Ministry and the RBI should think of bringing in some regulation and bring all foreign investments in the sector under the scanner of Foreign Investment Promotion Board,'' Mr Ramesh said.

He said the IT sector, which was also affected by Rupee appreciation, could withstand the ''Rupee assault'' as they were competitive. ''I am not much worried about the IT industry as they are very competitive and can overcome the problem themselves,'' he added.

UNI

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