Tuesday, September 10, 2013: According to V Raja, MD of TE Connectivity India the drop in the rupee has provided Indian exporters the opportunity to take on China. Especially, his company TE Connectivity is analysing the prospects of increasing exports from India. “We are establishing a new facility in Bangalore, and we could create additional capacity for export if needed,” the Times of India quoted Raja.
The depreciation has coincided with the efforts by the government to spur manufacturing. Fall in rupee has made Indian exports much more appealing.
“The rupee depreciation is the icing on the cake,” said P V G Menon, President of the India Electronics & Semiconductor Association (IESA), the Times of India reported. IESA is carrying on a study which is yet to be concluded, it discovers that India has a 12-13 per cent disability in some high volume products, however, the country enjoys 1-2 per cent advantage in some other industrial products like flat panel displays.
“Now with the depreciation, these figures may be more in favour of India. Labour in China has become four times as expensive as in India, and many companies are today looking at a China-plus-one strategy. So we should benefit,” Menon added.
J Crasta’s company CM Envirosystems, which is into environmental testing chambers for testing a whole array of products including missiles, informed that the exports of his company has increased three-fold this year, partly due to devaluation in rupee.
