Chapter 3
IMPACT OF RUPEE APPRECIATION ON INDIAS EXPORT
(WITH SPECIAL FOCUS ON LABOUR INTENSIVE SECTORS)
Indian exports enjoyed the advantage of slow
depreciation of currency during the period of mid-
2005 to mid-2006. Rupee showed a turn around
since August 2006. In terms of Real Effective
Exchange Rate (REER), it rose steadily between
August to November 2006 and slipped slightly
thereafter. From March 2007 onwards, Rupee
experienced a rise in its value. As per REER
(Graph 3.1), rupee has appreciated by almost 8%
during March to May 2007. Appreciation was
much higher against US Dollar compared to Euro.
Another round of appreciation is visible between
August-October 2007, which has been relatively
mild. REER provides the trade weighted average
change in exchange rate vis--vis major
currencies. Hence, the appreciation rate as
reflected in REER provides a combined picture
Graph 3.1
39
of how Indian Rupee got appreciated in recent
times.
Rupee got depreciated during July to October
2005 and then February to August 2006. In Rupee
terms, monthly exports grew by 51% and in US
Dollar terms monthly exports growth rate was
41% during this period July to October 2005. In
the entire period of 2005-06, exports grew by
23.44% in US Dollar terms and touched US $ 103
billion. In terms of Rupee, growth was around
21.6% and total exports in 2005-06 were Rs.4.6
trillion. During the period 2006-07, Indias
exports grew almost by 22.5% in US Dollar terms
and total exports reached to US$ 126 billion. In
Rupee terms, growth was 25.3% and total exports
were Rs.5.7 trillion. Impact of changing values
of currency on exports has not been significant
during 2005-06 and 2006-07 as both the periods
were marked by appreciation as well as
depreciation of currency which played an overall
neutralizing role. Moreover, impact of
appreciation of Rupee on exports requires at least
four to six months time to get realized.
Since April 2007, as there has been sharp rise in
the value of Rupee, there is a severe impact on
the export growth rate (Table 3.1). The cumulative
exports during the period April-October in 2005
was US $ 57 billion (Rs. 2.5 trillion) which
increased to US $ 71 billion and (Rs.3.2 trillion)
in April-October of 2006 registering a growth rate
of almost 24.4% in US Dollar terms (30% in
Rupee terms). The cumulative exports during
April-October of 2007 have been US $ 85.5 billion
(Rs.3.5 trillion). In US Dollar term the growth
was around 21% but in Rupee terms the growth
declined to only 7% implying a serious blow in
terms of rupee realization of Indian exports.
In case of imports, cumulative value of imports
for the period April-October, 2007 was US $ 130
billion (Rs. 5.3 trillion) as against US$ 103.7
billion (Rs. 4.8 trillion) registering a growth of
25.31% in Dollar terms and 11.07% in Rupee
terms during the same period of 2006. The import
growth rate for the same period in 2006 over 2005
was 26% in US Dollar terms and 32% in Rupee
Table 3.1
Indias Exports vsi-a-vis Exchange Rates
Indias Exports to World
Period (Rs. Million) (US $ Million)
Apr-Oct 2005 2,494,969 56,928
Apr-Oct 2006 3,250,912 70,838
Apr-Oct 2007 3,477,939 85,583
Source: Calculated from India Trades, CMIE
40
terms. Slowing down of import growth in 2007
has been mainly because of less growth in POL
import. This has proved that Indias import has
not increased significantly despite the fact that
Indian rupee has appreciated significantly in
recent months. In fact, slowing down of import
growth rate implies that Indias import is less
elastic with respect to exchange rate.
Currency Appreciation and Export Value:
Recent Experience
In 2006-07, India witnessed large trade deficits
to the tune of US $ 65 billion and current account
deficit was as high as US $ 10 billion. The level
of trade deficit should have been enough to
depreciate the rupee, as supposed in traditional
exchange rate theories. However, interest rate cuts
by the US Federal Reserve led to higher inflow
of portfolio investments into the country resulting
in unprecedented and continuous rupee
appreciation. Foreign portfolio investment
recorded an inflow of US $ 20.7 billion during
April-July 2007. FDI inflow was also significantly
high and recorded US $ 6.6 billion during April-
July 2007 (US $ 3.7 billion in April-July 2006).
Large inflow reflects expansion of domestic
activities, positive investment climate, and
positive view towards India as a long-term
investment destination. All these have raised an
upward pressure on Indian Rupee (INR).
Average Value
Rs. Per Euro Rs. Per US $
54.09 43.81
58.03 45.86
55.73 40.68
 Impact of Rupee Appreciation on Indias Export

Rupee depreciated steadily for a decade after being On the other hand, though the Indian Rupee
floated in 1993, dropping from an average annual appreciated against Euro, Pound Sterling and
rate of Rs. 31.37 per US Dollar in the 1993-94 fiscal Yen also, the rate of appreciation has been much
year (April-March) to Rs. 48.40 per US Dollar in lower. Moreover, the upward rallying of rupee
2002-03 (an average annual depreciation of nearly against these currencies more or less leveled
5%). From 2003-04 to 2005-06, however, the rupee off since May 2007, though there have been
appreciated against the US Dollar by 3% on average high fluctuations in weekly movements.
a year. But the rate of appreciation of Indian Rupee Against Euro, Indian Rupee shows a slight but
has been unprecedentedly high from July 2006 till steady depreciation from July onwards. The
date, falling by about 16.3 % (46.97 to 39.25 per trend of exchange rate vis--vis US Dollar and
US Dollar). The average rupee-US dollar rate in Euro is given in Table 3.2 and Graph 3.2 and
November 2007 was the lowest since 1999-2000. 3.3 below.
Table 3.2
Indias Exchange Rate
US dollar Euro
Exchange rate Change (%) Exchange rate Change (%)
2006-07 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 2007-08
April 44.9 42.2 1.4 -4.0 55.2 57.0 3.4 -2.2
May 45.4 40.7 1.1 -3.5 58.0 55.1 4.8 -3.3
June 46.0 40.8 1.3 0.2 58.3 54.7 0.5 -0.7
July 46.0 40.8 1.0 -0.9 59.0 55.4 1.2 1.2
August 46.5 40.8 0.1 1.0 59.6 55.6 1.0 0.4
September 46.1 40.3 -0.8 -1.2 58.8 56.0 -1.4 0.7
October 45.5 39.5 -1.3 -1.9 57.4 56.2 -2.4 0.3
November 44.9 -1.3 57.8 0.7
December 44.6 -0.7 59.0 2.1
January 44.3 -0.7 57.7 -2.2
February 44.2 -0.2 57.7 0.0
March 44.0 0.4 58.3 0.7
Source: Reserve Bank of India
Graph 3.2

Source: Monthly exchange rate available in India Trades, CMIE and RBI

41
 Graph 3.3
Source: Monthly exchange rate available in India Trades, CMIE and RBI
The current upward rallying of Rupee evidently
is a natural outcome of Indias robust economic
growth over the last decade. With low interest
rates in US, India and other emerging markets are
becoming increasingly attractive as an investment
destination for US and other countries. As more
and more Dollar flows to India, its supply exceeds
demand and result in depreciation against Indian
Rupee. As most of Indias trade is through US
Dollar, continuous appreciation of Indian Rupee
against US Dollar has a significant impact on
exports. Exports through Euro were unable to
balance the loss incurred in exports earning
through US Dollar.
Graph 3.4 below explains the dynamics of Indias
export growth. Export values in terms both
Rupees and US Dollar are described in the
diagram. Rupee values are measured on the left
hand vertical axis and values in US Dollar in right
hand axis. The average monthly growth
(calculated through CAGR) of exports during
April-September in 2006 was 4.54% in US Dollar
(5.08% in Rupee terms). Higher growth in Rupee
terms compared to US Dollar implies the
advantage of depreciated currency in realization
42
of exports. The monthly average growth rate
during the same period of 2005 was 2.07% in US
Dollar (2.15% in Rupee). However, during 2007,
though exports were growing but decline in
growth rate is very much visible. In the period
April-September of 2007, Indian exports grew by
3% per month in US Dollar and in terms of Rupee
the rate was 2.15%. Lower growth rate in rupee
terms compared to US Dollar shows that due to
appreciation, the export income in Rupee is
slowing down.
The growth of Indias exports in 2006 was both
due to fast growth of world exports as well as due
to its depreciated currency. In 2006, according
to WTO, world export growth was around 8%.
Export growth may slow down to 6% in 2007 due
to moderate deceleration of World economic
growth. Hence, slowing down of Indian exports
is also partially due to slow down of world
demand in 2007 and not completely due to Rupee
appreciation. Also it is important to note many
other currencies have shown the tendency of
appreciation (Graph 3.5) and as a result
competitive disadvantage of Indian exports due
to appreciated currency have also partially
 Impact of Rupee Appreciation on Indias Export

neutralized. Some of these countries have given
extra thrust in increasing productivity and perhaps
India is loosing its advantage due to that. The rise
in world merchandise exports in 2006 was also
due to global inflation. Almost 40% of exports
value was due to this price effect. As the world
inflation slows down, the extent of price effect
will also come down in the export market. This
might have contributed to slow down of Indias
export growth also.

Graph 3.4

Source: Monthly exchange rate available in India Trades, CMIE and RBI

Graph 3.5
Dollar changes vis--vis selected major currencies, 2001-2006
(Indices, January 2001=100)

a. Trade weighted currency basket of the Korean won, the Singapore dollar and Chinese Taipei dollar.
Source : http ://www.wto.org/english/news_e/pres07_e/pr472_e.htm

43
Effect on Labour Intensive Exports
Rupee appreciation affects different sectors,
differently. High-import intensity sectors like
automobiles, petroleum products, gems and
jewellery, fare better in face of a stronger
rupee as appreciation renders their imported
inputs to a lower value. However, the
appreciating rupee could significantly erode
net profit margin of low-import intensity
sectors like textiles and leather, as exporters
of these sectors remain in a disadvantageous
position especially in price sensitive
international markets. Many of the low-import
intensity sectors also operate with very low
margins, making them feel the heat of rupee
appreciation more. The impact on employment
is also directly related to the factor intensity
Table 3.3
of production both in the export units as well
as in the input sector. An analysis of this is
given in Table 3.3.
If the input sector is labour intensive and export
units use largely imported inputs, employment in
input sector will get the hit as they will be replaced
by cheap foreign inputs. This implies that even
though high import-intensity sectors benefit from
the appreciating rupee it does not necessarily mean
that in the longer run the economy, as a whole,
will be benefited.
Continued rupee appreciation could have a long
lasting impact on employment as most low
import-intensity sectors are highly labour-
intensive and they lay off labour quickly as rupee
appreciation erodes their profitability. Also

Impact of Rupee Appreciation on Exports and Employment

Characteristic of Exports Output/Exports Employment

High intensity in use of Rupee Appreciation will
imported inputs in reduce the import cost of
production inputs. These sectors must
be able to partially/fully
neutralize the effect of
appreciation in export
market
Low intensity in use of Rupee appreciation will
imported inputs in make these sectors un-
production competitive unless
deflationary pressure
reduces the cost of
production sufficiently.
In these sectors employment in export units
may not get hurt but downstream input
sector may have the pinch.If the sector
uses inputs which are based on labour
intensive technology, high import of
inputs will negatively affect the
employment as well as production of
import-competing input sectors. If the
sector uses capital intensive production,
there will be less severe effect on
employment
These sectors will receive maximum jolt.
As export demand goes down, induced
demand of inputs will also come down.
Employment will be hard hit if the sector
uses labour intensive technology.

44
 Impact of Rupee Appreciation on Indias Export
employment in import-competing industries may
get hit later on. Job losses were already reported
in certain sectors, such as textiles and leather. The
strain on the labour market became visible ever
since last year when number of registered job
seekers in the country shot up by more than 2
million to 41 million. Significantly, the increase
came after two consecutive years of decline in
registered work applicants.
The software exports sector also gets affected by
the long-march of rupee. Indian IT companies
derive a large share of their revenues from the
US and a strengthening rupee erodes their
margins. Software industry body NASSCOM
contends that there has been too much rupee
appreciation in too short a time, making small
and medium IT companies to be the hardest hit.
Industry sources state that a one per cent rise in
the rupee value would affect bottom-line of the
IT and BPO sectors by 30 to 40 basis points.
While the full impact of the negative growth on
employment will be assessed by the end of the
financial year, the reports from industry and trade
associations and exporters indicate that if this
Graph 3.6
Source: Calculated from Principal Commodity Exports, India Trades,
CMIE
45
trend continues, by March 2008, the total job
losses may exceed 2 million.
A limited survey conducted by the Regional
Authorities under DGFT covering 83 units
including leather, textiles, engineering, plastics,
marine products, pharmaceuticals, chemicals,
agriculture and food processing, electronics and
handicrafts and carpets has shown a job loss of
20,769 between April-November 2007.
Impact on Textile Sector
Textile is an important sector in Indias export
basket. This sector has negligible use of imported
inputs and is employer of large number of people
in India. Rupee appreciation has indicated loss in
export growth both in textile as well as in
readymade garment (RMG) sector. Graph 3.6 and
3.7 provides trend picture of exports from this two
sectors. A comparison between April-June in 2006
and 2007 reveals that textile sector exports
dropped by 0.66% in terms US Dollar (by 10.13%
in rupee terms). The decline in RMG exports has
been more severe. The exports fell by 4.21% in
US Dollar terms and by 13.19% in Rupee terms.
At product level, steep decline is observed in case
of cotton apparels which have share of 80% in
total apparel exports. In case of woven category,
decline in exports are also observed. RMG exports
fell by more than 10% in USA market which
comprises of 31% of the market and by only 4%
in EU market having share of 45% of total RMG
exports. Clothing sector is highly labour intensive.
An investment of Rs.100 million generates 500
direct and 200 indirect jobs. Around 5.8 million
people are engaged in apparel industry. Due to
slowing down of the export growth, employment
generation will be mere 12% of what has been
targeted. In fact in many sub categories, job losses
are already reported. It is estimated that for every
percentage point of appreciation, profitability of
exports in textile sector is hit by 1.2%.
Impact on Leather Sector
Graph 3.8 below shows that leather exports have
fallen mainly at the beginning of the year, which
may be due to early appreciation during the
October to January period. During April-
Graph 3.7
Source: Calculated from Principal Commodity Exports, India Trades,
CMIE
46
September, exports have increased. However, in
rupee terms export grew only by 4.84% (in US
Dollar terms by 16%) implying erosion at the time
of realization of exports in Rupee.
Over 65% of leather exports are invoiced in US
Dollar. The problem is compounded as most of
the Indian exporters cater to the lower end of the
global market where penetration is directly
depended on the price lines offered by the
exporters. Moreover, several American Brands
operating in Europe prefers to trade with US
Dollar than Euro and hence leather exporters are
unable to switch to euro to shield their losses. The
manufacturing units in the leather sector are more
or less compartmentalized as one serving the
global markets and the other domestic markets.
In view of this arrangement, exporters have no
set up or experience to sell their products in the
domestic markets. Thus, when the rupee
appreciated almost to 12% in a shorter time
exporters had no other alternative but to start
reducing their production and think in terms of
lay off of the employees.
 Impact of Rupee Appreciation on Indias Export
Graph 3.8
Source: Calculated from Principal Commodity Exports, India Trades,
CMIE
Leather exports are significantly dependant on
orders from the foreign buyers. Accordingly most
of the employment offered by the sector is either
unorganized or in form of contract employment.
Due to the current Rupee appreciation, exporters
are unable to negotiate prices with big buyers
which resulted into smaller orders and this in-turn
has caused loss of employment to the people
working on contract basis or in unorganized
sector. More than 94% of the manufacturing units
serving the export markets are either small or
medium sized ones. These units operate on thin
margins and depend heavily on own funds for
working capital as access to institutional finance
is cumbersome or need collaterals. When the
export realization has reduced, it not only wiped
out the margins but also reduced the working
capital. This led most of the exporters in to a
vicious cycle of debt-low productivity.
Impact on Gems and Jewellery
The sector is highly labour intensive but at the
same time import intensity is equally high.
Exports in this sector have produced spikes with
47
upward trend since mid 2006. There was big drop
in exports in November 2006, February and April
2007. Details of this are described in Graph 3.9
below. The sector has experienced a rising export
trend during the period April-June 2007.
Comparing the same period in 2006, exports in
2007 has grown by 27% in US Dollar terms and
15% in terms of Rupee. However, exports in
Rupee having relatively slower growth imply
that sector is not immune from the rupee
appreciation despite having high import
intensity. This is mainly due to the fact that
exporters were unable to neutralize risk
considering a forward contract. As rupee has
appreciated after the contract has been signed,
exporters lost in terms of actual value received.
The industry is significantly driven by SME
players who operate on a thin margin of 3-6%.
Loss in realization of export values while
converting into rupee has eroded their margin
significantly. The industry requires large
working capital in view stocking of important
raw materials and finished goods. Erosion of
export earnings has also created a strain in terms
of availability of working capital.
 Graph 3.9

Source: Calculated from Principal Commodity Exports, India Trades, CMIE

Impact on Handicrafts Sector (Excluding
Handmade Carpets)
Handicrafts are highly labour intensive products but
pricing of handicrafts are difficult to explain by
market forces completely. The intrinsic values of
handicrafts are such that price depends on many non-
market issues. The export market of handicrafts
products is a reflection of this. Graph 3.10 below
explains the fluctuating trend of Indian handicrafts
exports. It dropped significantly in July 2006 and
rose again in September and fell thereafter. The
cumulative exports during April-June 2006 were
around US $ 110 million (Rs.5017 million) and it
dropped to mere US $ 64 million (Rs.2610 million)
during April-June 2007 reflecting a major erosion
of export income both in terms of Indian Rupee and
US Dollar. It is also important to mention that due
to the time gap between contract, delivery and
payment, exporters are bound to have been affected
as Rupee appreciated so sharply within such a short
time. As large numbers of rural and poor artisans
are dependant on handicrafts products and most of
the time they do not have fixed wages and they sell
their products at piece-rate, any short fall in the
export market affects them severely.

Graph 3.10

Source: Calculated from Principal Commodity Exports, India Trades, CMIE

48
 Impact of Rupee Appreciation on Indias Export
Other sectors such as engineering goods, forest
products, sports goods, chemical products agro
products such as tea, rubber, coffee, etc. are also
affected by rupee appreciation but the degree of
injury is varying.
Other Contributory Factor to the
Slowdown in Export Growth
Infrastructure bottlenecks acts as additional
contributory factor to the slowdown in export
growth. The high power costs and the erratic and
inadequate supply of electronic power have
adversely affected the competitiveness of Indian
exporters especially of small and medium
enterprises. The Indian ports take a turn round
time of 3-5 days as against only 4-6 hours at other
international ports like Singapore and Hong Kong.
As far as internal transport is concerned, the
secondary roads and inter-state checkpoints are
still needed to be improved further. Time taken
for transportation of goods from the production
centres to the port of export is an important factor
in determining the cost of transaction. Due to
various provisions governing inter-State
movement, lot of time is wasted at the intra-State
and inter-State checkpoints/ borders while good
are moved through road transportation. With the
growth of trade and increase in number of
consignments, there is a need not only for
improved trade infrastructure facilities to
international standards but also for streamlining
trade data infrastructure to remove any data
anomalies and provide the basis for appropriate
policy formulation.
Full neutralization of taxes needs to be ensured
so that Indian exports do not become
uncompetitive in the international market. The
present system of neutralization of taxes through
the Duty Drawback and Duty Entitlement
49
Passbook Scheme do not take care of
neutralization on account of State taxes like octroi,
mandi tax, electricity tax, etc. which is another
contributing factor to the slowdown in export
growth. While re-imbursement of inputs services
used in manufacture of export products is possible
through CEVAT route, there is no mechanism for
reimbursement of post-production export-related
activities/ services obtained like service tax paid
to foreign countries, inland haulage charges,
commission paid to agents etc. thus adversely
affecting the competitiveness of Indian exports.
The small manufacturers who are either in non-
excisable sectors or are exempted from purview
of excise duty have to bear incidence of service
tax paid during course of exports. This makes their
products unproductive. Though there is a
provision of refund under the VAT Act, which
came into effect from 1st April 2005, the refund
mechanism is yet to be operationalised in most of
the States and exporters are facing problems on
this account.
Government Initiative and Strategy
Options
Dr. C. Rangarajan, Chairman of the Economic
Advisory Council to the Prime Minister has been
requested by the Prime Ministers Office to look
into and offer suggestions on the measures sought
by the Department of Commerce for mitigating
the adverse effect on the exports arising out of
the appreciation of the rupee. The National
Manufacturing Competitiveness Council
(NMCC), headed by the Dr. V. Krishnamurthy
has been directed by the Prime Ministers Office
to further examine the measures and make
appropriate recommendations to the competent
authority for necessary implementation.
As Indias exports are getting affected,
government of India has also taken several steps
to neutralize the effect of rupee appreciation.
Government announced a package in July 2007
which is mainly in the form of providing several
incentives to exporters and enhancing some of the
existing ones. The package includes enhancing
of DEPB rates, duty drawback rates, decrease of
ECGC premium, pre and post shipment credit
interest rate, etc. To clear all arrears of terminal
excise duties and CST reimbursement, an amount
of around Rs.6000 million has been released by
the Ministry. The government has also announced
the exemption of Service Tax paid on post
production export of goods. The exemption is
allowed on some taxable services, which are not
in the nature of input services but could be
linked to export goods. However, some exporters
are of the opinion that this incentive may be
extended to service tax paid by exporters to
foreign agents, movement of goods from factory
to port/ICDs, on bank charges etc.
Apart from this, RBI has also announced to
provide interest subvention of 2 percentage points
per annum to all scheduled commercial banks in
respect of rupee export credit to the specified
categories of exporters mainly which have labour
intensive production technique and less import
intensity in terms of input use.
Several organizations have also provided
suggestion to government and currently they are
being studied. Some of the suggestions are as
follows:
l Funds in EEFC account may have the interest
rates at par FCNR
l Separate refund mechanism for state level
taxes
l Introduction of EXIM Scrips
50
l Separate export working capital fund which
will be available to Bank at a cheaper rate
etc.
RBI also has taken up several monetary policy
measures which have some impact on the system
especially on the value of Rupee. On July 31
2007, RBI raised the cash reserve ratio by 50 basis
points, to 7% in order to drain liquidity from the
system and thereby to handle inflation. At the
same time it lowered the amount of money raised
from external commercial borrowing that can be
converted into rupees. It is expected that this will
reduce the capital inflow and dampen the pace of
Rupee appreciation. Central Banks of other
countries where domestic currencies have been
appreciating also take similar steps. The whole
range of instruments include direct sterilisation
through issuance of government or central bank
bonds, increases in reserve requirements, and
different means of capital account management
to manage the monetary impact of excess forex
flows.
Firms are also required to handle their foreign
exchange with due care. As India is gradually
getting integrated with the world economy,
currency volatility will become a normal affair.
It is important to mention that firms are enjoying
several incentives for quite sometime but there is
a big question about converting these incentives
into productivity gain. Loss due to currency
appreciation may partly be neutralized with lower
cost of production emerging from higher
productivity. Within industry also, the effect of
rupee appreciation varies among firms. More
productive firms can absorb the loss in a better
way. Also, due to volatile currency market, firms
need to learn sophisticated methods of risk
management.
 Impact of Rupee Appreciation on Indias Export
Short term strategies of firms will be to use forex
derivatives like forward contracts, options swaps
and futures. Use of derivatives ensures the profit
margins for cash inflows or outflows of foreign
currency business transactions. Forwards are very
useful for exporters especially in case of US Dollar
has premium for forward values and is
depreciating against Rupee. Exporters may use
forward contract to switch the invoice currency
into strong currencies by paying nominal charges
without bothering the foreign buyer to change the
invoice currency.
Medium Term strategies mostly cover operational
efficiency to hedge currency risk. Such approach
covers internal matching of exposures by netting
currency assets and liabilities, currency risk
sharing clause in sale & contract, structured
financial deal to reduce cost of borrowing etc.
Analysis of cost portfolio is also essential. In the
medium term, firms must start looking into the
issues related to value addition of products and
not just the cost arbitrage Exporter while
considering a market entry, develops promotional
51
strategy taking into account the anticipated
exchange rate changes. Appreciation of rupee will
adversely effect allocation of funds for such
activities as compared to their competitors in
international markets. Cost reduction will help
to maintain promotional budget for business
development.
Long term strategy of firm must focus on
protection of foreign market shares, updating the
product to reduce price sensitivity, making
attempts for brand development and broaden the
markets. Companies have to respond to exchange
risk by altering their product strategy covering
product innovation and new product introduction
based on R&D. Constant improvement in product
by following creative destruction of old product
is required for survival during the time of strong
rupee scenario. Quality of the product and service
must be of world-class to win trust of overseas
buyers. Companies also need to allocate sufficient
funds to train employees about nuances of
international business environment including risk
management.
 ANNEXURE

Source: Calculated from Principal Commodity Exports, India Trades,

CMIE

Source: Calculated from Principal Commodity Exports, India Trades,

CMIE

52
 Impact of Rupee Appreciation on Indias Export

Source: Calculated from Principal Commodity Exports, India Trades, CMIE

Processed Foods include processed fruits and juices, Processed vegetables Meat
& Preparations and miscellaneous processed items
Source: Calculated from Principal Commodity Exports, India Trades, CMIE

53