Exports to bear the brunt of Re appreciation against $: JP Morgan
New Delhi: International consultants JP Morgan has projected a sharp dip in Indian exports to 6 per cent during the current financial year from 16 per cent recorded during the last fiscal. Indian exports, according to JP Morgan analysis, will be hit by appreciation of rupee against dollar, weak external environment and absence of positive trends in manufacturing sector locally.
Regretting that “government officials remain unconcerned about the potential hit from rupee’s appreciation against the greenback,” the report said, “rupee’s appreciation now is all about dollar weakness, and not about positive sustainable structural shifts in Indian economy — especially balance of payments — that were an important driver up until a few months ago.”
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Truck hire charges fail to follow cut in diesel prices
New Delhi: The cut in diesel prices by around Rs 3 per litre over the last six weeks has failed to bring down the truck hire charges which have gone up by 8-10 per cent since March 30. According to an update of Indian Foundation of Transport Research and Training, the rates are likely to come down in the next 15 days. The truck hire charges have gone up by 8-10 per cent since March 30 when the first cut in diesel prices was effected and by 2-2.5 per cent since the last cut on May 15. Despite the transporters’ agreement to effect a change of 5 per cent increase/decrease with Re 1 per litre revision in prices, the parcel goods booking rates also did not come down. However, the study said the rise in truck charges was not likely to maintain its tempo and would fall in tune with the slash in diesel prices on account of increasing pressure from well-organised goods book companies, transport contractors and brokers.
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