New Delhi, May 8 (KNN) With the weakening of Indian rupee against the US dollar, the domestic unit hover around 67.14 currently against the US currency. The depreciated value is seen as good news for the exporters as they get more money for their exports.

“This depreciating rupee will definitely benefit the traditional sectors of the economy as exports of the sectors will go up in long run but how long it will last depends on the future exchange rates,” said Ajay Sahai, Director General and CEO of Federation of Indian Export organization (FIEO) while talking to KNN.

The rupee's weakness against the US dollar continued today. The rupee fell to 67.27 per US dollar today at day's low, it’s lowest since February 8, 2017. The rupee had breached the key 67 mark against the US dollar the previous day and had ended at 67.13 against the US dollar.

Currency value is one of the key factors driving exports, though the overall growth in the importing country is also important.

Ajay Sahai said the MSMEs are gradually recovering from the post GST effects, but liquidity is still a challenge for them.

Though Rupee depreciation will give some comfort to MSMEs from recovering the post GST effects but how long it will last, it depends on the future market conditions, he added.

At the moment traditional sectors like textiles are benefitting from this depreciation as compared to large sectors.

Commenting over the challenges MSMEs are facing he said that high logistic cost is the biggest challenge for MSMEs.

Further, he said that India is losing its competiveness against foreign competitors because global demand is shifting with countries like Myanmar, Bangladesh and China giving tough competition to India.

The exporters in the country have been raising concerns over delay in GST refund leading to blocked working capital for them. Exporters have claimed that over 60% of their refunds are stuck with the government. (KNN/YV)