'Rupee rise a concern, but FY'08 export target intact'
Govt rules out scaling down the export target of USD 160 billion for 2007-08, despite admitting that the unabated rise in the value of rupee against the dollar was a matter of concern.business Updated: Sep 20, 2007 17:44 IST
The government on Thursday ruled out scaling down the export target of USD 160 billion for 2007-08, despite admitting that the unabated rise in the value of rupee against the dollar was a matter of concern.
"Rupee appreciation is a concern. We are going to look at it (steps to help exporters)," Commerce and Industry Minister Kamal Nath told reporters.
As the flow of foreign funds increased on the back of stock market touching new high, the rupee breached the 40-level mark to stand at over a nine-year high.
Nath said while it was a new situation requiring "a new response, there is no change in the export target". The government would review the target only in November after taking inputs from the exporters.
"Exports are an engine of growth and we have to ensure that growth is not affected," he said.
Though the export growth has maintained a healthy trend at about 18 per cent in the first few months of the current fiscal, it has dipped significantly from the year ago level.
Besides slowdown in US economy impacting the performance of exports, the about 10 per cent appreciation in rupee in the recent months has exerted additional pressure on the exporters' margin in the last six months.
The Centre had announced a Rs 1,400 crore relief package in July to cushion exporters from the appreciating rupee.