The government is working on a scheme to refund
local taxes and levies to labour-intensive industries
with little import component to offset the impact of
rupee, which touched a nine-year high.
rupee at an all-time high is a cause for concern. We
are looking at framing a scheme to refund the levies
and taxes to neutralise the impact and help the exporters
of labour-intensive sectors with no or very little import
component," commerce and industry minister Kamal
Nath said on the sidelines of the third India-GCC Industrial
is a matter of concern not only to our exporters but
also to our manufacturers as there is a possibility
of cheaper imports replacing manufactured products,"
rupee was trading at 40.45/46 a dollar in late morning
trade, off Monday''s peak of 40.28, its highest level
in nine years.
minister, however, felt that India Inc has built up
the resilience and the competitiveness to absorb the
effect of appreciating rupee.
said his ministry is in talks with the Reserve Bank
of India and the export council to define the way forward.
the impact of the rising rupee on trade deficit, Nath
said it is likely to remain neutral as cheaper oil imports
would balance the export reduction.