'Expect rupee to rise, growth to revive on higher export nos'
Encouraged by growth in exports and narrowing of trade deficit, India Inc Tuesday said it expects the positive developments to help the rupee appreciate and growth to revive in the coming months.
New Delhi: Encouraged by growth in exports and narrowing of trade deficit, India Inc Tuesday said it expects the positive developments to help the rupee appreciate and growth to revive in the coming months.
"We are anticipating the rupee to consolidate at around 60 by December-end because the current scenario is very promising. We expect IIP (index of industrial production) numbers to fall in positive trajectory in the coming months," President of PHD Chamber Suman Jyoti Khaitan said.
"We are also anticipating improved growth between 5.5 percent and 6 percent for current fiscal," he added.
India's exports rose for the second straight month in August, while the trade deficit narrowed as gold imports fell.
Exports climbed 12.97 percent to USD 26.14 billion last month and imports declined 0.68 percent to USD 37.05 billion, the Commerce Ministry said.
"Confidence of Indian exporters to tide over adverse market scenario and their resilience to withstand global competition by quality and commitment to delivery, diversification into new markets and products has helped in achieving a healthy growth in exports," Chairman of CII Export-Import Committee, Sanjay Budhia, said.
However, industry body Assocham while welcoming the growth in exports, said it has serious concerns about the persistence of high trade deficit.
The trade deficit narrowed to USD 10.9 billion in August from USD 14.7 billion in the corresponding month last fiscal.
"To see improvements in trade balance on sustainable basis, India needs to promote manufacturing sector and its competitiveness," Assocham said.
Gold imports dipped sharply to USD 0.65 billion in August from USD 2.2 billion in July.
Export growth had touched a two-year high of 11.64 percent in July, when it touched USD 25.83 billion.
Imports of gold and crude oil have fuelled India's trade deficit, which has contributed to the widening current account deficit (CAD). The CAD touched an all-time high of 4.8 percent of gross domestic product, or USD 88.2 billion, in 2012-13.
The government proposes to bring down the CAD to 3.8 percent of GDP, or USD 70 billion, in the current fiscal.