Commerce Secretary Rajeev Kher on Tuesday said he would be concerned if the rupee value goes below the level of 63 against the dollar.

“The exchange price has come down to 63… as the Secretary of the Department of Commerce I feel that if rupee goes further down, or stays for too long at this point, it should give me a reason to feel a little concerned,” Kher said here after inaugurating the India Engineering Sourcing Show (IESS), the flagship event of EEPC India.

“I am not an economist but I was told by my industry friends that 60-62 is a good level. My understanding is that normally when the rupee has been playing between 60-62 level, we were told by our exporter community that was a good exchange value,” he said.

EEPC India Chairman Anupam Shah said while the rupee depreciation may appear to be giving advantage to exporters, excess volatility is not advisable as it may impact the raw material cost.

Over 300 foreign business and government delegates are participating in the fourth edition of IESS, which opened in Mumbai on Tuesday. The event will showcase technological advancement and bandwidth of the engineering sector, which has emerged as the number one export item in the country’s export basket.

Kher said the Government will keep a close watch on the rise in gold imports, which grew 571 per cent in November, 2014 and take steps if required.

“Gold imports have risen six times. Only a few days ago we had come up with a revision of the policy. The government would like to wait and watch and then take steps, if required,” the Commerce Secretary said

He said while a big rise in gold imports is a matter of concern, the situation has also to be seen in the context of whether this increase could result in improvement of India’s exports of gems and jewellery. Gold imports in November amounted to $5.6 billion, against $835 million in November, 2013.

Over 300 foreign business and government delegates will participate in the fourth edition of IESS, which opened in Mumbai on Tuesday.

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