Mr. Neeraj Sharma
CEO
Neeraj Electronics
Jorhat, India
Free Member
Joined :06/09/2007
No of Topics Posted : 90
Reply/Comments : 9
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TOPIC : Exporters cry foul over rising Re
The rise in value of the Indian rupees in dollar terms appears not to have augured well for country's export community, affecting exporters' competitiveness in the global market and causing the closure of many companies.
In Punjab, the textile industry, which gives employment to nearly 30 million people in the country, is said to be the worst hit.
Till recently, stitching with perfection used to be the USP of Raghu Exports, one of Asia's leading manufacturers and exporters in leather tool bags, garments and upholstery.
Established in 1986 in Jalandhar, the company has clients in 19 countries, including major players like Home Depot, Wal Mart and Lowes Sears.
But for the past one year, Raghu Exports, like many other exporters, is facing a dilemma due to the rupee strengthening against the dollar.
Praveen Kumar, the Chief Managing Director (CMD) of Raghu Exports, said: When we ask our clients to pay more as our currency has strengthened against the US dollar, they say they have nothing to do with it. We continue fighting, but now it is vulnerable. We are not able to get any prize increase from the customer."
Industry experts say that if the present trend continues, it would not only render Indian exports unviable, but force manufacturers to give up their expansion plans. It might lead to cheap imports flooding the domestic market and finishing off the Indian industry.
A major integrated textile producer in India, the Vardhman Group, feels that bigger competitors like China are taking the edge.
S P Oswal, the Managing Director of the Vardhman Group of companies in Ludhiana, said: "The industry will remain weak, and if it remains weak for another four-five years, it will have very little chance of survival against world competition. Because today, our biggest competitor is China."
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