Industrialists seek 1991-like measures

Tribune News Service

Ludhiana, September 18

With rupee plunging beyond 72, the local industry is having sleepless nights. Industrialists want the government take certain steps for saving the industry.

Upkar Singh Ahuja, president of Chamber of Industrial and Commercial Undertaking, said: “With the rupee continuing to plunge against the US Dollar creating an environment of uncertainty, the industry wants steps akin to 1991 be taken by the Centre to stabilise the situation”.

The Chamber of Industrial and Commercial Undertakings (CICU) said the Centre should announce a policy like zero income tax on exports to promote exports.

The CICU president 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 a tremendous increase in exports then,” he added.

Ahuja said the depreciation had caused panic among the industry which, in turn, had hit manufacturing. The country is facing a situation like one experienced in 1991. At that time, the government had been successful in controlling the situation. However, the situation seems to be going out of control this time, he said.

“The prevailing conditions have made the industry uncompetitive in the world market with the cost of raw material going through the roof. Foreign buyers are not willing to buy our products under the prevailing circumstances. Customers are asking for a reduction in rates due to a rise in realisation, which is affecting our exports too,” he said.