FIEO Says Rupee Fall not Good for India

Reacting to Indian Rupee hitting life time low against US Dollar on 10^th June, Mr M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) said that volatility may be good in the short term but would impact the long term interest of Indian exporters. High volatility creates uncertainty and speculation which hit the economy.

Rupee depreciation has not benefitted Indian exports as can be seen from the Trade Data. Further this will have no impact on the Sovereign ratings of the country. (Importers demand discounts from exporters to share the devaluation windfall).

Elaborating further, FIEO Chief said that buyers are asking for discounts or reducing prices while sectors such as Petroleum, Gems & Jewellery, Electronics, Plastic Products, with high import intensity, are impacted due to increase in input cost.