Date:25/03/2008 URL: http://www.thehindubusinessline.com/2008/03/25/stories/2008032550942300.htm

Back ‘Strong rupee helps companies import better technology’

Our Bureau

Hyderabad, March 24 The appreciation of the rupee against the dollar might have had an impact on the exports but has helped companies import better technology at a cheaper cost, experts said.

“This in turn has helped them get a better realisation for their produce and helped them negate the loss due to appreciation of the rupee,” according to Mr Ramakrishna Rao Chitturi, Director, International Trade Facilitation Centre, Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).

Product quality

Addressing a programme on Export Packaging and Quality Regulation organised by the industry body here on Monday, he added that exporters have to be careful on the quality of the product that is exported.

If it is not up to the mark then the whole consignment can be rejected which not only tarnishes the image of the company but also the nation.

According to Mr Shiv Kumar Rungta, Chairman of the Foreign Trade Committee in FAPCCI, the Union Government’s export target of $200 billion might not be met due to various factors.

Hurdles

He cited a variety of hurdles — tariff and non-tariff barriers coupled with appreciation of the rupee against the dollar and the slowing down of the US economy as reasons.

Mr Rungta also said that as exports increase it is also important to look into the aspect of packaging.

“Sometimes, the quality of the product might be very good, but because the packaging is not up to the mark it might get damaged leading to the whole consignment being rejected.

“So, an exporter must not compromise on the quality of packaging to merely cut down costs.”