BUSINESS

‘Weak rupee good for textiles and clothing’

But, high volatility to hit exports: AEPC

The rupee weakening against the dollar is expected to be positive for the textile and clothing sector.

Sanjay K. Jain, chairman of Confederation of Indian Textile Industry, said yarn exports to China increased 20% to 24 % between April and June. However, the Chinese yuan also weakened in the period and hence Indian exports were affected.

“It is more important to see the rupee weakening in context to our competitors’ currency,” he said. From April to June, the weakening Indian currency gave exporters a competitive edge.

According to Chandrima Chatterjee, adviser at Apparel Export Promotion Council, “Right now, it [weakening rupee] is positive. But, too much volatility will affect exports.” The Centre is expected to reimburse embedded taxes and raise Reimbursement of State Levies, thus giving garment exports a push.

Recommended for you