No Special Package for Exporters
The Finance Ministry has ruled out any financial package to offer help to exporters, who are fighting with lower margins due to fall in value of US dollar against Indian rupee.
"No such proposal is under consideration of the government," Mr. S S Palanimanickam told Rajya Sabha in a written reply.
Rupee has seen a rise in valuations from Rs 45 against US dollar in October 2006 to Rs 40 levels in July this year. There has been a small change in the trend in last week due to Stock Market crash.
In July this year Finance Ministry had announced a Rs 1,400 crore package for exporters in order to help them cover up their losses due to increased value of Indian Currency.
The current announcement from State Minister of Finance has given a setback to statement made by Commerce Minister Kamal Nath earlier this month. Mr. Kamal Nath had promised exporters an incentive package in order to compete with other developing nations.
Mr. Kamal Nath had assured exporters that Government was aware of the current situation and all measures will be taken to deal with loss of exporters due to currency valuations.
This announcement will have a bad impact on sentiments of Indian Exporters. The Top line of many companies has already suffered due to rise in Rupee.