The shine of rupee has spelt gloom for exporters. But for the information technology, leather and handicrafts industries in Uttar Pradesh, there is gloom in the air. The situation in the leather industry, which is one of the largest revenue earners, is such that many players have been forced to shut shops.
Says Alok Vatsa, an exporter of leather garments and accessories in Noida, ?Losses in the last 7-8 months have squeezed us dry. Since we cannot back out on our commitments, we are shipping the orders, but we are doing so in total loss. But then there are many others who have shut shops as they were unable to sustain the jolt.?
The exporters say they have been hit hard both ways. While input costs have increased, the rupee appreciation has hit them the hardest.
The Agra footwear industry, home to the largest shoe manufacturers in the country, also has the same story to tell.
Says Jagdish Arora, ex-president of the Agra Footwear Manufacturers and Exporters Chamber, ?Everyday we are losing orders to China, Vietnam and Indonesia because of rupee rise. Our business has gone down by 30%-40% in this season. With the yuan being more stable, we are losing our grip on the industry to a more competitive China.?
The IT industry, too, has been severely hit.
Says Shakti Nath, CMD of Logixgroup that provides state-of-the art facilities to
IT/ITeS, MNC?s and large corporations, ?Those companies which have export targets in the US are the worst hit. And while big IT companies are somehow managing to weather the turmoil, the small and medium companies have been hit to the extent that they have had to shut down or cut down on their costs.?