As Rupee Plunge Plus 72, Industry Demand 1991-like measures

Ludhiana, September 18, 2018: Upkar Singh Ahuja, President, Chamber of Industrial and Commercial Undertakings (CICU) in a statement stated that with the rupee continuing to plunge against the US Dollar creating an environment of uncertainty, the city based industry wants steps akin to 1991 be taken by the Centre to stabilize the situation. The Chamber of Industrial and Commercial Undertakings (CICU) said the Central Government should immediately announce policy like zero income tax on exports to promote exports. CICU President S.Upkar Singh Ahuja said in 1991, the value of rupee had depreciated from Rs.19 to Rs.26 per dollar. “The scheme of zero income tax on exports had resulted in tremendous increased in exports then.” he added.

Ahuja said the depreciation had caused panic among the traders and industry, which in turn had hit the manufacturing adversely. The country was facing 1991 like situation, though at that time the government remained successful in controlling the situation; however, the situation seems to be going out of control this time.

“The prevailing conditions have made the industry uncompetitive in the world market with the cost of raw material shooting through the roof, while foreign buyers are not willing to buy our products under the prevailing circumstances, For the export customer are asking to reduce rates due to rise in realization, which is effecting our exports too. “The prevailing situation has become two-edged sword for us,” he said.