Road ahead looks tough for MSME exporters, says DEA

The Delhi Exporters Association (DEA) has expressed concern on the issue of rupee fluctuations, stating that this might lead to the closure of nearly 40% export units in the country unless some remedial measures are undertaken by the government immediately.

"Rupee fluctuations have only added to the woes of MSME exporters, who were already suffering huge losses due to the global economic slowdown. Margins have plunged drastically due to the appreciation of rupee against the US dollar, thereby compelling several in the MSME export sector to stall operations temporarily," said A Dutta, proprietor of Crafts Export House, a small-sized exporter of ceramic products in New Delhi.

DEA chief, SP Agarwal, cautioned that the scenario might worsen further if the government does not take immediate steps to bring the rupee volatility under control. He further anticipated that exporters might end up losing their priced customers to neighbouring export nations if the latter begin looking for cheap markets.

"Export volumes are likely to plunge in the coming days as the Indian export sector may lose their competitiveness and low-cost advantage, thereby compelling overseas buyers to turn to other countries to meet their requirements," said Mr Agarwal.

DEA has requested the government to consider its recommendation and has called for a fixed exchange rate to provide some relief to the beleaguered export sector.

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