While the economy and the government may have found solace in rupee’s appreciation, the same has turned out to be a cause for concern for exporters, as per engineering exporters Engineering Export Promotion Council (EEPC). According to the nodal agency, strengthening of rupee sub 60 levels is certainly not good news for the exporters as this will dent competitiveness of Indian products in a tough global market, where Chinese have maintained their competitive edge by calibrating their currency.
In view of this, EEPC has requested Reserve Bank of India (RBI) to buy dollars and build reserves to ensure that domestic currency does not appreciate too much. This is perhaps one of the reasons as to why the Indian currency has not appreciated beyond the 59/$ mark.
Engineering, which contributes the highest to the country's total outbound shipments, exports recorded a growth of 21.25% at $ 5.72 billion during the first month of the current fiscal.