SIMA urges Centre to control rupee appreciation

Coimbatore, Tamil Nadu, Apr 19 (UNI) The Southern India Mills Association(SIMA) today urged the Central Government to control the rupee appreciation against the US Dollar to sustain the export growth of the Indian Textile and Clothing Industry.

In a release here SIMA Chairman S V Arumugam said the indian rupee had been appreciating for quite some time and climbed to 41.92 US Dollar last week, registering an appreciation of over six per cent from April, 2006.

Mr Arumugam said any futher appreciation in the rupee value would seriously bunt the competitiveness of the textile industry, resulting in decline in exports.

He said India is a major competitor in textiles and garments for China, Pakistan, Bangladesh and Indonesia. Although the Chinese Yuan had appreciated by 7.24 per cent during the said period, China has other built-in advantages, as a result of which its exports have been rising significantly, he added.

The Chairman said, Pakistan rupee has, however, depreciated by 1.33 per cent in April this year. Similarly Indonesian rupee had depreciated by 0.36 per cent, he added.

He said the appreciation of Bangladesh Taka had been only Rs 1.95 per cent, so far.

UNI