Wait...

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Strong Rupee unlikely to impact Indian exports this time around.


Date: 02-05-2017
Subject: Strong Rupee unlikely to impact Indian exports this time around
Exports from a country are first to get hit when its currency begins to gain strength against the US Dollar. India is no exception. So far this year, Indian Rupee has appreciated more than 5% against US Dollar.

Rudra Sensarma, professor of economics, IIM Kozhikode said, “Since most exporters use short term forward contracts to hedge their forex exposures, they would be unfazed by the strengthening rupee unless it significantly drops below the 65-68 range it has been maintaining for more than a year."

However, India Ratings believe that a sustained currency appreciation can negatively impact the operating profitability for export oriented sectors due to the un-hedged trade exposure of up to 44%.

Yet the impact on operating profit will be marginal somewhere near 2% as analysts expect a pick-up in merchandise exports driven by the recovery in global commodity prices, better demand conditions in the United States and the EU reflected in the improving consumption will aid to overall export growth.

In the last two months of FY17, merchandise exports have reported a double-digit growth mainly on account of recovery in global commodity prices rather than higher volumes.

Data compiled by Ministry of Commerce showed merchandise exports to the United States and the EU in March 2017 increased 8.99% and 9.27% on year-on-year (YoY) basis.

These merchandise exports rose for the seventh consecutive month in March at 27.6% yoy led by both oil (69.1% yoy) as well as non-oil (23.2% yoy) exports and reflected the second consecutive month of double digit growth  (February: 17.5% yoy).

Also, Indian passenger vehicle and MHCV registered a volume growth of 16.2% and 24.2% in FY17. Among these growth a large shipment was made to the US and EU thus reflecting supporting demand.

However, India Ratings said, “It is possible given the depreciating bias which was prevalent in December 2016, the hedging practices may have titled towards unhedged exposures and the recent appreciation could provide negative surprises, more than anticipated.”

“While the impact of a depreciating currency is likely to be much more negative than that of an appreciating currency, volatility of the currency could provide greater surprises on both sides. Given the macro fundamentals and the capital flows, Ind-Ra does not expect the volatility to be the order of the day,” it added. 

Source: Zee Business

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 24-10-2020



Date: 21-10-2020
Notification No. 38/2020-Customs
Notification regarding exemption of duties of Customs against scrips issued under the RoSL scheme for apparel and made-ups sectors.

Date: 21-10-2020
Notification No. 07/2020 – Central Excise
Notification regarding exemption of duties of Central Excise against scrips issued under the RoSL scheme for apparel and made-ups sectors

Date: 20-10-2020
Notification No. 37/2020-Customs
Seeks to further amend notification no. 152/2009 dated 31.12.2009, regarding the rate of duty of customs on imports of "Polybutadiene Rubber" originating in Korea RP and imported under the India-Korea Comprehensive Economic Partnership Agreement.

Date: 15-10-2020
Notification No. 99/2020 - Customs (N.T.)
Exchange rate Notification No.99/2020-Cus (NT) dated 15.10.2020- regd.

Date: 13-10-2020
Trade Notice No. 30/2020-2021-DGFT
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) for India’s Exports under GSP, GSTP, India-Malaysia CECA, India-Singapore CECA w.e.f. 15th October 2020

Date: 13-10-2020
Notification No. 30 /2020 -Customs (ADD)
Seeks to amend notification No. 48/2015-Customs (ADD), dated 21st October, 2015 to extend the levy of ADD on imports of “Plain Medium Density Fibre Board of thickness 6mm and above” originating in or exported from China PR, Malaysia, Sri Lanka & Thailand, for a period of three months i.e. upto 20th January, 2021.

Date: 09-10-2020
Notification No. 39/2015-2020
Amendment in Export Policy of Onions

Date: 08-10-2020
Circular No. 44/2020-Customs
Procedure for inspection of ICDs/CFSs/AFSs -reg

Date: 08-10-2020
Notification No. 50/2020-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI



Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001