With the currency prices fluctuating in the Indian Economy, trade in India is being adversely affected. “Rupee depreciation does not benefit exporters, instead, a stable currency is needed for long term sustainable growth of India’s international trade” said Sanjay Budhia, Chairman of CII National Committee on Exports and Imports. Trade practices including costs of raw material & commodities, taxes, shipping and warehousing charges are estimated and dealed in foreign currency or at import parity price. With the price of rupee fluctuating, quoting prices & booking orders during import and export becomes a problem. With depreciation in the currency, importers too expect lower costs. This is creating a major problem for the Indian traders and affecting the inflow of foreign currency in India.
