The main challenge is to ascertain what the value of the rupee will be in the next few months, as payments are made at a later date, an exporter says
The Indian rupee sliding to an all-time low is often considered a boon for India’s exports. Smaller exporters have a different story to share.
Agra-based leather footwear exporter Gopal Gupta who has been grappling with challenges and uncertainty fuelled by the Russia-Ukraine conflict that has resulted in high logistics costs, has cancelled orders. A weaker local currency has also led to higher import costs and shrinking margins over the last three months.
“The fact that a weaker currency bodes well for exports doesn’t apply to all. When the rupee depreciates, our customers demand benefits or discounts,” said Gupta.
First Published: May 21 2022 | 06:03 AM IST