Global crisis hits India’s exports: The News

Tuesday, October 28, 2008
NEW DELHI: The global economic crisis has hit India where it hurts the most as over a dozen job-oriented export sectors slipped into disarray showing up to 70 per cent negative growth last month over a year-ago period, the Press Trust of India news agency reported on Monday.

Alarmed by sharp decline in export value in tea (-20 per cent), handicrafts (-70 per cent), carpets (-32 per cent), oil meals (-50 per cent), man-made yarn (-17 per cent), cotton yarn (-19 per cent) and marine products (-19 per cent), the commerce ministry is likely to recommend the lifting of export curbs on items like steel and agro products.

At a high level meeting, convened by Commerce Secretary G K Pillai on October 24, it was pointed out that the government needs to “re-look” at all export restrictions. “The global financial crisis is significantly impacting Indian exports and the impact could be more in the coming days,” said an official involved in the stock-taking exercise.

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Indian rupee weakens: The News

Tuesday, October 21, 2008
MUMBAI: The Indian rupee weakened on Monday as large dollar demand from importers offset gains in the local share market, with a cut in the central bank’s key lending rate providing only little respite.

The partially convertible rupee ended at 48.97/98 per dollar, 0.2 per cent weaker than 48.88/89 at close on Friday. It fell to 49.20 during trade, just short of its record low of 49.30 reached earlier this month.

“There was huge importer demand and there was also some defence-related dollar buying by state-run banks,” a senior dealer with a primary dealership said. “The central bank was expected to step in around 48.90, but they came in much later, pushing the rupee lower,” he said.

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