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Rising rupee may hit export target: minister

The unabated rise of the Indian rupee against the US dollar may act as a "deterrent" for the country to meet its export target of $160 billion in 2007-08, says Kamal Nath

business Updated: Aug 07, 2007 19:45 IST

The unabated rise of the Indian rupee against the US dollar may act as a "deterrent" for the country to meet its export target of $160 billion in 2007-08, Commerce and Industry Minister Kamal Nath said in New Delhi on Tuesday.

"The rising rupee may act as a deterrent in meeting the (export) target for 2007-08. But we are still hopeful," Nath told reporters on the sidelines of a conference.

"The rupee appreciation has impacted exports. The government is seized of the matter as export is linked to employment to a large extent. The prime minister is also apprised of the matter and is in constant touch with the RBI (Reserve Bank of India)," Nath said.

The government last month announced a $320 million relief package for exporters to counter the enormous losses they were facing due to the rupee appreciation.

According to Nath, the government may bring in more such relief packages to offset the losses faced by the exporting community.

"We will be looking at bringing in a new package of incentives for the exporters. We would also be looking at several measures to ensure that the fall of exports is arrested," he said.

The rate of growth of exports has slowed in the first quarter of 2007-08. Exports grew 23 per cent between March and April 2007, 18 per cent between April and May 2007, and 14.05 per cent between May and June 2007.