National

`Exporters unaffected by exchange rate fluctuation'

By Our Special Correspondent

NEW DELHI JULY 6. The appreciation of the rupee against the dollar has not adversely impacted on the price competitiveness of exporters of computer software and hardware, according to a survey of invoicing pattern of Indian exporters undertaken by the Electronics and Computer Software Export Promotion Council (ESC).

"Our survey reveals that the margin of profitability, the inherent strength of the exporting unit to absorb the temporary shock of fluctuations in the exchange rate, buyer-seller synergies and goodwill are the major determinants that influence the competitiveness of the exporters in a particular market," it said.

The dollar is the most sought after currency in the world market and overseas buyers and Indian exporters are used to export invoicing in this currency for long.

Since the instability factor in the value of the dollar vis-à-vis other major currencies appears to be a short-term phenomenon, shifting to different currencies under different situations may result in a temporary gain, the Council said.

It does not seem to be a long-term economic and strategic proposition because the buyers may not agree to frequent changes in currency in export invoicing.

Exporters feel that there are signs of a serious turnaround in the American economy and that its authorities are taking policy initiatives to pep up the dollar value vis-à-vis other major currencies.

Therefore, it is necessary to watch the developments in the dollar exchange rate vis-à-vis the Indian rupee for sometime more.

The ESC says that as per the feedback received from the exporting community, it sounds rational to allow the Indian exporters follow their sense of the market while deciding on the export-invoicing pattern.

© Copyright 2000 - 2009 The Hindu