The gradual appreciation of the rupee has caused substantial panic among Indian exporters especially the textile exporters. The domestic currency has appreciated over 3% against the US dollar to 43.15 in 2006-07 and at current trading rate of Rs 42.86 will have much deeper impact, possibly hit rock bottom for the Indian exporters.

TEXPROCIL (Cotton Textiles Export Promotion Council) in a recent press release already mentioned that Indian textiles export to major markets like USA has grown by only 5% against a growth rate of 27% for China, 26% for Indonesia and 20% for Bangladesh, etc. This is pretty alarming looking in to the importance of US market for India as it accounts for nearly 35% of the country’s total textile export.