Exporters are benefiting from a weak rupee as they get more money while converting their dollar export earnings into Indian currency. Software exporters are expected to be the highest beneficiaries of the declining rupee.
The weak rupee has added to the earnings of the textile industry too. Exporters of apparel, pharmaceuticals, steel, packaging films and software have witnessed a rise in their revenues. It’s like a free money for export oriented software units as almost every contract is in dollar terms and the conversion rate has gone up significantly. The fluctuation in the rupee does not affect offshore clients and hence contracts remain intact at the previously decided terms.
Export oriented units are seeing an average increase of two to seven per cent in their revenues because of the declining rupee. The weak rupee is expected to give a cushion to apparel exporters who were heavily burdened by the sharp rise in the cost of imported raw materials. Apparel exports are expected to do better now. The growth was almost stagnant since the past few years but a weak rupee has brought cheers to many exporters. Their revenues are likely to edge up by over three per cent.