It seems that the Government has now realised the gravity of the situation with the rupee rising to a new high vis-à-vis the US dollar. Mr.Kamal Nath, Union Minister of Commerce & Industry who had earlier sought the intervention of Prime Minister, Dr.Manmohan Singh, to help the exporters to overcome the present crisis has now proposed a package of wide ranging measures to soften the impact of rising value of rupee on exports. It would help the exporters to increase their competitiveness in the international markets. Mr.Nath admitted that due to rising rupee realisations of exporters have gone down, thus hurting their competitive strength.
Mr.Shankarsinh Vaghela, Union Minister of Textiles has also asked for the Prime Minister's intervention to provide relief and exemption to textile exports affected by appreciation of rupee in the international market. The Union Finance Minister, Shri P.Chidambaram has also pointing out in his recent press statement that Government is taking steps to mitigate the financial hardship being faced by the exporters particularly in the labour intensive sectors like textiles. In this connection, it may be noted that in his earlier press statement Mr.G.K.Pillai, Commerce Secretary assuring some help to exporters against the appreciation of the rupee, had pointed out that the “Government will conduct a "micro analysis" of sectors affected by the appreciation of the rupee against all major currencies.
Mr.Rakesh Mohan, Dy. Governor, RBI in his recent statement pointed out that ”though the Indian currency was market-determined, the Central Bank could step into ensure stability. He admitted that RBI did intervene in the foreign exchange market but it was really very small compared with the overall turnover in the forex market”.
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