The fortnight’s burning question.
Is the government doing too little too late to arrest the slowdown in exports?
Yes. Ganesh Kumar Gupta, President, FIEO
Every exporter is facing acute pressure on account of the sharp and sudden rupee appreciation. The packages announced by the government to offset losses are grossly inadequate and remain mostly on paper. Then, the recommendations of the Commerce Ministry are being turned down by Ministry of Finance, creating further uncertainty.
Maybe. Ravi Sikka, Chairman, CII Northern Region Economic Affairs
There is an urgent need for policy measures to temper the impact of the appreciating rupee. Reducing interest rates will not only help reduce costs, it will also reduce interest rate arbitrage opportunities, thus, helping moderate inflows of dollars.
No. T.K. Bhaumik, Chief Economist, RIL
The government is providing capital subsidies and interest reimbursements. Now, exporters will have to redouble efforts to leverage advantages like the availability of low-cost and skilled labour, design expertise and raw materials base into competitive advantages.
Compiled by Manu Kaushik