Appreciating rupee finally takes toll on exports

New Delhi, Jun 1 (UNI) The unceasing appreciation of the rupee has finally taken a toll on exports, with the Commerce and Industry Minister Kamal Nath today announcing that exports fell by as much as two billion dollars in April.

Mr Nath told reporters on the sidelines of a function here that exports for the month of April 2007 were just 10.6 billion dollars as compared to 12.58 billion dollars in March this year.

On a question as to whether the value of rupee to the dollar should be restored to its earlier level of Rs 44, the Minister did not give a direct reply but said the appreciating rupee was a consequence of the high rate of growth of the economy.

He was, however, of the view that the economy would learn to adjust to a changing exchange rate.

Mr Nath also said the Duty Entitlement Passbook Scheme (DEPB) has been extended till March 2008 and the government is looking at an alternative duty neutralisation scheme to replace the DEPB scheme when it lapses next year.

UNI