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Steps to protect exporters from impact of rupee volatility

The government on Wednesday said it is taking steps to protect exporters from the impact of rupee volatility against dollar.

"We are taking every positive step to address the impact of currency volatility and provide cushion to domestic manufacturers and exporters," Commerce and Industry Minister Anand Sharma said in the Rajya Sabha during the Question Hour.

Highlighting the measures taken to ease pressure of falling rupee on trade, the minister said, the government has announced interest subvention for medium and small industries and labour intensive sectors.

A dollar-credit window has also been made available to exporters, he said.

Though rupee depreciation helps exporters in terms of better realisation, the volatility is harming them.

On trade deficit with China, the minister said the government is taking measures to address the trade imbalance, even at the political level.

He said efforts are also being made to diversify the trade basket with emphasis on manufactured goods. As a result, the export of value-added products from India to China has started improving.

In 2010-11, the trade imbalance was USD 23,864 million, he added.