Re hits 4 export segments

Written by Commodities Bureau | Bangalore, Oct 30 | Updated: Oct 31 2007, 07:19am hrs
Special package would be required for the four export oriented sectors - textile, leather, plantation and handicraft, which were hit by the rupee appreciation as these segments are not dependent on imports, Jairam Ramesh, Union minister of state for commerce said.

The package that was announced by the Central government has helped the export sectors, which has import content. But there is no import content in the sectors like textile, leather and plantation, which are all labour-intensive industries. These sectors are also facing price competition from other countries like China and Vietnam, he added.

If capital inflows continue the way they are, he said a special package will have to be worked out for these four industries. "I have approached the finance minister to look at these four industries some what separate from the others. We can not put control on capital inflows too much. But if capital inflows continue the way they are, then we have to really think of ways of protecting the competitiveness of these four industries in particular." He said he also had spoken to the prime minister in this connection.