Currency fluctuation has become a new normal: Nirmala Sitharaman

Posted by Daily Shipping Times on 25-04-2017        Tweet

...need to focus on factors like infrastructure and raw material cost to enhance export competitiveness

NEW DELHI : Currency fluctuation has become the new normal and there is a need to focus on other factors like infrastructure and raw material cost to enhance export competitiveness, Commerce and Industry Minister Nirmala Sitharaman said recently.

The Minister said the value of the currency is only one factor and Indian exporters have learnt to take into account currency fluctuation while planning their shipments.

“It is just not the currency which gives you the competitiveness, but there are other factors which are equally critical for our exporters like infrastructure, raw material cost, energy supplies, state restrictions,” she said recently.

“I would not want to place too much emphasis only on currency fluctuation or only the rupee strengthening,” she added. Strengthening of the domestic currency against the US dollar makes export uncompetitive as per unit realisation comes down.

While speaking at a event recently she said the exchange rate alone cannot be the “one cause” for export competitiveness and in the last few years, the volatility in currencies across the world has been the new “normal“.

Sitharaman said that strengthening of the rupee is also a reflection on the performance of the economy.