SME Times is powered by   
Search News
Just in:   • Sensex, Nifty advance for 7th straight day  • Mizoram CM presents Rs 3,588 crore vote on account  • Conclave on India-Africa project partnerships concludes  • Kerala firm bags contract to build Manipur airport  • Slowing economy needs a boost 
Last updated: 17 Oct, 2018  

Rupee.9.Thmb.jpg Rupee slide not helping exports sector: Drip Capital CEO

   Top Stories
» Conclave on India-Africa project partnerships concludes
» CII expects 8 pc GDP growth annually for next five years
» IBBI, SEBI sign MoU for pushing IBC
» Prabhu directs for reviewing Jet Airways issues
» Strong rupee to hit exports, fear exporters
SME Times News Bureau | 17 Oct, 2018

The downhill slide of the Indian Rupee has hardly proved beneficial for the Indian export sector, said Pushkar Mukewar, Co-Founder and Co-CEO, Drip Capital.

"Common perception is that devaluation in currency means good times for exporters, because they end up selling more as their goods/services become cheaper in the international market. However, there are several factors at play that mean that exporters see the negligible positive impact of a falling Rupee," said Mukewar.

The factors include, he added, import dependencies, damping because of global supply chains, increased profit hedging, etc.

For example, there are trends that show that trade impacts the value of a currency, rather than the other way around. The Rupee depreciation rate in June this year was 5.19% while the export growth was 14.17%. However, when the Rupee further fell sharply to 6.56% the next month, the export growth in fact reduced to 9.37%, he elaborated.

"This is because we import materials like crude, rough diamonds, gold, and precious metals to manufacture our major export commodities. Factors such as this mean that Indian exporters might actually see only minimal impact of the Rupee's continued devaluation," said Mukewar.

Print the Page Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 20 Mar, 2019
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter