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    The document summarizes the impacts of rupee depreciation on India's textile industry. It discusses that the rupee has depreciated 18% in the last five months due to factors like gold imports and corporate borrowing. This depreciation is supported by India's shift away from RBI currency interventions since 2007. The textile industry contributes significantly to India's GDP and employment. While textile exports have grown 60% over six years, rupee depreciation and resulting inflation have negatively impacted the industry. Inflation in the textile industry was over 16% in early 2011 but has reduced since.

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    The document summarizes the impacts of rupee depreciation on India's textile industry. It discusses that the rupee has depreciated 18% in the last five months due to factors like gold imports and corporate borrowing. This depreciation is supported by India's shift away from RBI currency interventions since 2007. The textile industry contributes significantly to India's GDP and employment. While textile exports have grown 60% over six years, rupee depreciation and resulting inflation have negatively impacted the industry. Inflation in the textile industry was over 16% in early 2011 but has reduced since.

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    The document summarizes the impacts of rupee depreciation on India's textile industry. It discusses that the rupee has depreciated 18% in the last five months due to factors like gold imports and corporate borrowing. This depreciation is supported by India's shift away from RBI currency interventions since 2007. The textile industry contributes significantly to India's GDP and employment. While textile exports have grown 60% over six years, rupee depreciation and resulting inflation have negatively impacted the industry. Inflation in the textile industry was over 16% in early 2011 but has reduced since.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    9 views8 pages

    Presented To: Presented by

    Uploaded by

    suvradeep1988
    The document summarizes the impacts of rupee depreciation on India's textile industry. It discusses that the rupee has depreciated 18% in the last five months due to factors like gold imports and corporate borrowing. This depreciation is supported by India's shift away from RBI currency interventions since 2007. The textile industry contributes significantly to India's GDP and employment. While textile exports have grown 60% over six years, rupee depreciation and resulting inflation have negatively impacted the industry. Inflation in the textile industry was over 16% in early 2011 but has reduced since.

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    Macro Economics Presentation

    On Rupee Depreciation and Textile Industry

    PRESENTED TO: Prof. Prashant Kulkarni

    PRESENTED BY: Group-1

    Rupee Depreciation
     18% of depreciation of rupee in last five months.  Reasons of weakening of Rupee: Large scale import of gold. Raising external funding gap for corporate. Sluggish pace of economic growth. Diversion of household saving from financial to physical assets.

     The depreciation has got support from the fact that preferences in policies are shifting away from RBI policy interventions in currency market from 2007 onward, which is a part of further economic liberalization in India.

    Rupee Depreciation
    Jan 2010 2011 45.93 45.39 Feb 46.33 45.44 Mar 45.5 44.99 Apr 44.5 44.37 May 44.5 44.9 Jun 46.56 44.85 Jul 46.84 44.42 Aug 46.57 45.28 Sep 46.06 47.64 Oct 44.41 49.26 Nov 45.02 50.84 Dec 45.16 52.67

    % Change

    -1.2

    -1.9

    -1.1

    -0.3

    -2

    -3.7

    -5.2

    -2.8

    3.4

    10.9

    12.9

    16.6

    54 52 50

    Exchange rate

    48 46 44 42 40 Jan feb Ma r Apr May Jun Jul Aug Sep Oct N ov Dec 2010 2011

    Months

    Scenario of Indian Textile Industry


    Indian Textile Industry One of the flourishing sectors of Indian Economy. Contribution more than 13% to Industrial Output. Contributes 16.63% to export revenues. Contributes 4% to the Nations GDP. As per 11 five year plan i.e. 2007-12, India will secure 7% share in global textile trade by 2012. It accounts for nearly 12% share of the country total export. It employees 35 million people.

    Increase of T&C exports increased 60.14% over last six years


    year 2006 2007 2008 2009 2010 2011

    Amount(USD)

    17.52

    19.15

    22.15

    20.94

    22.42

    25

    Amount(USD)
    30 25 20 15 Amount(USD) 10 5 0 2006 2007 2008 2009 2010 2011

    Inflation and Textile Industry


    It is forecasted by many economists and policy analysts that inflation in the economy will deaccelerate after Q3 of FY2011-12, which would allow the RBI to lower policy rates eventually.

    Textile inflation rate


    Jan 2010 2011 6.5 13.2
    20 18 16 14 12 10 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    Feb 8 16

    Mar 9.1 18.3

    Apr 11.3 16.9

    May 11.3 16

    Jun 10.2 14.5

    Jul 10.1 11.4

    Aug 10.4 9

    Sep 9.8 8.6

    Oct 10.1 7.6

    Nov 11.7 6.6

    Dec 12.3 6.8

    Inflation rate

    2010 2011

    Months

    THANK U

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