Rupee likely to remain strong in next 12 months, says analyst

Mumbai, Jul 20 (UNI) The Indian Rupee is likely to remain strong in the next 12 months, according to noted analyst Jamal Mecklai.

Speaking to exporters at a seminar on 'How to deal with the new improved rupee' held at All India Exporters' Chamber here today, Mr Mecklai said, ''I do not expect the rupee to weaken in the next 12 months.'' He traced the recent rise in the Rupee to October 2003 and said the present situation of the exporters is similar to that of the government in 1991 when it was forced to take drastic measures and open the country's economy.

Mr Mecklai presented the audience with suggestions on how they could adjust to the new situation. He said they should build strong internal systems, protect their margins, to be more conservative, diversify and hire good professionals.

He pointed out that large export houses were not too affected by the strenghtening of the rupee due to their size and professionalism.

He adviced the exporters to expect 'tough times' for the next two years, and reminded them that they had a good run for the past six to eight years.

UNI