Indore: The weakening rupee is not all bad as it is seen giving a cushion to software companies and textile industry aiding them earn extra penny. 

Cutting down on the increased raw material costs, exporters of apparel, pharmaceuticals, steel, packaging films and software among other export oriented units have witnessed a rise in their revenues. 

Narendra Sen, founder of a data centre in Indore said, “It’s like a free money for export oriented software units as almost every contract is in dollar terms and conversion rate has gone up significantly. The fluctuation in rupee does not affect the offshore clients and hence the contracts remain intact at the previously decided terms” 

Sen said his revenues have jumped by about 5 per cent due to the plunge in rupee. 

The rupee had crashed to an all-time low of 72.91 on Wednesday. 

Experts said, exporters are benefiting from a weak rupee as they get more rupees while converting their dollar export earnings into Indian currency. 

They said, among all software exporters will be the highest beneficiaries of the declining rupee. 

According to an industry estimate, export oriented units of the region are seeing an average increase of 2 per cent to 7 per cent in their revenues because of the declining rupee. 

Dinesh Mishra, an exporter of packaging films located at the Special Economic Zone said, “We have seen an increase of about 2 per cent in our revenues. The rise could have been more but it was negated by imports of raw materials.”

Industry players from the textile segment said, the weak rupee will give a cushion to the apparel exporters who were heavily burdened by the sharp rise in the cost of the imported raw materials. 

A leading textile exporter from the region who did not wish to be named said, “Certainly apparel exports will do better now. The growth was almost stagnant since past few years but a weak rupee has brought cheers to many exporters of the region. The revenues are likely to edge up by over 3 per cent.”

Source : Economictimes

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