//Rising inflation, both at the retail level and the wholesale price index, clearly indicate that the cost of production for exportable goods is increasing, thus negating the positive impact of the currency depreciation, engineering exporters' body EEPC India has said.
"A near 15 per cent increase in the primary articles translate into well over 20 per cent rise at the retail level. This shows the extent of cost pressure that Indian exporters are faced with. Going forward, besides the tough global conditions, inflationary pressures at home are a major challenge for the exporting community," EEPC India chairman Anupam Shah said. //
Therefore, unless the interest rates are reduced to some competitive levels, the exports are not likely to pick up, putting pressure on the INR]
Courtesy: Post Jagran