The Hindu Business Line : Stronger rupee

The Finance Minister has advised exporters to get used to the stronger rupee, and book new export-orders on the basis of the new dollar-price. But how is it possible for Indian exporters of garments and home-furnishing textiles to survive in the global market with China already dominating it and other neighbours like Bangladesh and Pakistan able to grab orders offering a much lower price than from Indian exporters, even earlier, when the dollar was stronger?

Statistics reveal that after a stronger rupee, Indian textile exports are down 36 per cent. Textile-mills are working just one shift instead of possibly three. Many exporters have closed down their units. Even suppliers to exporters are fighting hard for survival. Fluctuating (now rising) yarn-prices have further added to the troubles.

Most exporters are taking orders at loss, just to cover a part of their fixed overheads.

The Indian textile sector, and other trade/industrial units associated with it contribute heavily to employment, and any closure of or downsizing in these units can cause large-scale unemployment, which may ultimately lead to a trend of suicides, as witnessed among the farming community in some States.

The Finance Minister’s ideal advice is only practical in a country without corruption, red-tapism and inspector-raj, and that too with a user-friendly simplified tax system. Unfortunately ‘Mera Bharat Mahan’ or ‘Shining India’ lacks all the required positives as proved by the Transparency International rankings, in which India has been crowned the most bribe-paying country.

Subhash C. Agrawal New Delhi