“Indian garment export is not likely to get much boost from the decision of international trade in rupee because Europe and the US are the major markets for Indian apparel exports. Buyers in this market prefer to pay in US dollar. Even, European buyers wants to pay in dollar instead of their own currency,” Apparel Export Promotion Council (AEPC) chairman Narendra Goenka told Fibre2Fashion. He however added that export-import of cotton and yarn may get some boost as there are many non-American and non-European countries where importers and exporters may consider transacting in rupee.

Federation of Indian Exporters Organisation (FIEO) has said that the RBI’s move will pave the way for trading and settlement of export-import transactions in Indian rupee. RBI has taken this step at a time when many countries in Africa and South America are facing huge forex shortages. So, the move will help exporters and importers, said A Sakthivel, president, FIEO.

The Southern India Mills Association (SIMA) chairman Ravi Sam welcomed the RBI announcement and stated that proactive initiative by the Government has given a sigh of relief to the Indian exporters and importers, who have been facing challenges owing to the tightening of monetary policies all over the world. He said that the policy would encourage the countries with forex shortage having substantial trade with India to increase their trade with India. This will create more opportunities to boost the exports, apart from helping India to reduce its trade deficit on account of oil imports.

Fibre2Fashion News Desk (KUL)