Rupee depreciation last year brought no positive impact: EEPC

Kolkata, Sep 12 (PTI) Rupee depreciation between July 2015and July 2016 has been equal to the rate of Consumer PriceIndex (CPI) giving no advantage to the exporters on exchangerate whereas the cost of production and transactions hadrisen, an exporters body said today. The analysis of engineering exports done by the EEPC Indiashows that during the said period, the rupee depreciation isabout the same as the CPI. "Indian exporters were also paying real interest ratesmuch higher than the competitive peers like China, Malaysia,Argentina and Mexico, leaving Indian exports less competitivein the international market," EEPC said in a statement. To the extent of rising cost of production, rupee inchedup, but on the other hand, the pricing power of Indianexporters has not been improving in the tough global markets,it noted. "While the pace of decline in the exports has declined,the development has to be seen on a very base year-on-yearsince the drop in shipments had started some 20 months ago,"EEPC India Chairman T S Bhasin said. While the real interest rate in India is about nine percent, it is less than five per cent in China and Malaysia,below one per cent in Mexico and minus four per cent inArgentina putting Indians on disadvantage against othercompetitors, EEPC said. PTI BSM PRANU