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October 01, 2007 16:49 IST
The government on Monday ruled out regulating the rupee movement, but said it will help exporters meet the currency related crisis by increasing refund of both state and central taxes.
"We do not calibrate rupee but our government will meet different export promotion councils in the next two-three days and see how we can refund some of the state level and central taxes... to exporters," Commerce and Industry Minister Kamal Nath told reporters at an export award function in New Delhi.
Riding on the back of large capital inflows both in the stock market and through the foreign direct investment route, the Indian currency has appreciated by over seven per cent in the first six months of the current financial year.
The rupee appreciation has hit exporters' margins and the growth in exports has drastically come down from an average 24 per cent last year to 18 per cent. Nath said exporters should step up exports in currencies other than dollar.
In his address to the Chemical and Allied Products Export Promotion Council, Nath asked exporters to change their business strategy to "meet future challenges". These, he said, included currency appreciation and free trade pacts.
Except a select list of items, the comprehensive economic cooperation agreements are aimed at eliminating duties with countries and blocs like Singapore, Thailand, Japan, ASEAN and European Union.
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