Delhi: Although the extent of appreciation of the
Indian rupee vis-à-vis the US dollar is not high
compared with other currencies, the fact that some of
India's competitors' currencies, such as that of China,
Malaysia, Thailand, Taiwan and the Philippines, have either
not appreciated or appreciated slightly less than India
or simply depreciated has impacted adversely on Indian
exporters, blunting their competitive edge.
is revealed in a study made by the Indian commerce ministry's
economic division in its latest Foreign Trade Update,
a newsletter circulated to India's commercial representatives
that the extent of appreciation is a very crucial determinant
of export competitiveness, the study said the Chinese
currency, Hong Kong currency and Malaysian currency have
not appreciated between May 2002 and May 2003, the latest
available position tracked.
said appreciation of the Thailand currency is lower than
that of India and of Singapore equal to India during the
period under review, while the Taiwanese and the Philippines
currencies have actually depreciated vis-à-vis
the US dollar.
the export competitiveness of these countries, which are
the key competitors to Indian products, is likely to be
higher than that of India, conferring on Indian exporters
a distinct disadvantage.
the study said, the currencies have appreciated vis-à-vis
the dollar for some developed countries like Italy which
also compete with India in leather items and most of the
European countries which compete with India in many manufactured
official study hastened to add that the impact on their
competitiveness vis-à-vis India because of this
appreciation might be marginal due to "quality aspect
and the types of items exported at sub-sector level (like
high-value Vs low value-added items)."