New Delhi, May 3 (KNN) Different exporter associations in the recent times have expressed their concerns over the rising rupee, fearing the negative impact it might have on the Indian trade. While the concern continues for the exporters, the Asian Development Bank’s Chief Economist predicts otherwise.

In an interview to the press, Yasuyuki Sawada, Chief Economist at the Asian Development bank said that India will not lose its export competitiveness due to the stronger rupee against the dollar.

He said that the Indian Export performance till now has been very strong and  emphasized that the rupee appreciation shouldn’t be seen in isolation, other factors such as the ‘market environment’ should also be taken into consideration.

He further said that there has been a lot of pessimism regarding the exchange rate, while that shouldn’t be the case. Overall Indian export performance seems to be positive.

However the Economist did raise concern over the fact that the rupee is gaining ground and is eroding the exporters’ competitive edge in a scenario where the exports have been at a face pace in the recent past.

Commenting on the Demonetization of the higher value notes in India he said that the impact of the move was nominal and is not going to affect the growth rate of the country according to the data analysed by the ADB.

In fact the economist expressed the probability of a medium term growth acceleration of the economy. (KNN/ DA)