FISME: Strategic thrust needed to exploit rupee depreciation
Hotline: 1800 102 2007
X
Search Business Opportunities
2012-06-08

FISME: Strategic thrust needed to exploit rupee depreciation

While welcoming the measures announced in the annual supplement to India's foreign trade policy, the Federation of Indian Micro and Small and Medium Enterprises (FISME), India's leading MSME organisation, has, however, pointed out that these measures ar

While welcoming the measures announced in the annual supplement to India's foreign trade policy, the Federation of Indian Micro and Small and Medium Enterprises (FISME), India's leading MSME organisation, has, however, pointed out that these measures are at best tactical and they have to be supplemented with a strategic thrust for sectors especially MSME to take advantage of the rupee depreciation which is here to stay in the short and medium term.

The government on Tuesday had announced extension of interest subsidy scheme by one year till March 31, 2013. The scheme was launched last year for labour intensive sectors such as SMEs, handlooms, handicrafts and carpets, providing two per cent interest subvention.

According to FISME, the depreciation of the rupee - over 27% fall during the last 13 months, is an opportunity that should not be allowed to go waste. It does not often happen that fall in the Indian currency is the highest among our competitors. The Vietnam Dong has depreciated only by 0.4%, Malaysian Ringgit by 4%, Thai Baht by 4% and the Indonesian Ruppiah by 8% during the same time period.

FISME feels that Indian manufacturers must exploit this currency-generated price advantage to penetrate new geographies such as the ASEAN group of countries, Africa or Latin America. FISME has called upon the government to liberally support various market penetration initiatives.

According to FISME's analysis, the currency markets have already factored in the burden of large fiscal deficits (of both Central and State governments), high current account deficit and persistent high inflation. As a result, the current level of the Indian Rupee is likely to be the "new normal" which will persist in the near to mid-term.

Related opportunities
  • Others Entertainment & Leisure
    About:Riddle Room is a live escape room, A form of..
    Locations looking for expansion Karnataka
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 30lac - 50lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Urban District Karnataka
  • Juices / Smoothies / Dairy parlors
    About Us: We are likely to bring about a revolution in..
    Locations looking for expansion Maharashtra
    Establishment year 2015
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 35
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai Maharashtra
  • HR & Recruitment
    About:   Aarvi Encon is an established manpower outsourcing company based in..
    Locations looking for expansion Maharashtra
    Establishment year 1990
    Franchising Launch Date 2017
    Investment size Rs. 2lac - 5lac
    Space required 0
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Guest House / Service Apartments
    About Us: A neoteric conception, U HOSTELS offer a plush accommodation..
    Locations looking for expansion New Delhi
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 50lac - 1 Cr.
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts