SME Times News Bureau | 24 May, 2012
The Centre and the Reserve Bank of India should take some urgent measures to protect exporters from the micro, small and medium enterprise (MSME) segment from the effects of sharp fall in value of the rupee, said exporters' body Federation of Indian Export Organisations (FIEO)on Wednesday.
"The time has come to act immediately to protect the interest of the exporters especially those from MSME sectors contributing 60% of country’s exports," said FIEO president Rafeeque Ahmed in a press statement.
The Indian rupee breached another psychological level of 56 against a dollar Wednesday, hitting a new low for the sixth session in a row.
Ahmed said drastic measures to augment supply of Dollars has to be initiated by RBI and the Government so that mismatch in demand and supply is addressed.
“Instruments like RIB or Millennium Bond may be introduced as with ECBs and FCCBs maturing shortly, there will be increased demand of dollars. RBI should look at our suggestion of directly selling of dollars to Oil companies so that they exit from spot market,” he added.
The FIEO chief also advocated for taking bold reforms to address rising fiscal deficits and making India preferred destination both for FDIs and FIIs.
