Ramaiah Not To Seek Rupee Devaluation
The commerce ministry will not approach the finance ministry for devaluation of the rupee as such a step has to be taken keeping in view the overall economic scenario, commerce minister B B Ramaiah said yesterday.
We wont interfere in issues relating to the finance ministry. It is for the finance ministry to decide on it by taking the overall economic picture into consideration, Ramaiah said in an interview.
The commerce ministers statement assumes significance in the wake of the demand from the exporters that the rupee be devalued as the countrys exporters were at a disadvantage as competing countries were devaluing their currencies.
When you speak of rupee devaluation, you will have to see the other side also. What about imports? Petroleum products, fertilisers and edible oil are all being imported. Their costs will subsequently go up after devaluation of the rupee, Ramaiah said.
Still, it is finance minister P Chidambaram who will have to consider taking all these aspects into consideration, he said.
The demand for devaluation gained momentum after the Fieo president Ramu S Deora called for immediate measures to make exports competitive.