With the Union Budget recently announced last week, India’s commerce minister Kamal Nath has interpreted it to be tough on exports. He requested India’s Prime Minister Manmohan Singh to sanction relief measure for exports which is currently existing in the backdrop of the rising rupee against the dollar. The rupee has risen by 13% against the dollar.
He also said that the Finance Minister did not pay heed to recommendations of the Prime Minister’s committee, while framing the Budget. The Commerce Minister added that with the steep rise in rupee, the market competition has reduces, posing a threat for those sectors which are labour intensive like gems & jewellery, textile and handicraft.