Besides handicraft, experts believe that tourism and IT sector will also reap benefits of failing rupee as both sectors deal with foreign exchange.
As the falling rupee has become a major worry for the majority of people in the country, who fear hike in inflation and high oil prices due to depreciation of Indian currency. However, for Kashmir’s handicraft exporters it has given a reason to cheer.
As a huge chunk of Kashmir handicrafts including carpets are exported to foreign countries, the depreciating rupee will boost exports, as well as, fetch higher returns for the local exporters. This falling rupee means Indian good will become cheaper in foreign currencies, while the imports including the fuel will become costlier.
“It is a good time for exporters as depreciation of rupee against dollar means our exported products are giving higher returns. It doesn’t happen daily, exporters are reaping its benefits it is a good sign for our handicraft sector which has been facing onslaught,” said Sheikh Ashiq, a leading carpet exporter from Kashmir and director on board of Carpet Export Promotion Council of India.
President, Chamber of Commerce and Industries Kashmir, Zahoor Ahmad Trumboo expressing similar views said depreciating rupee is helping exports. “It is known fact that whenever value of rupee falls against dollar, exports get good returns, while importers face brunt. It is good for our dying handicraft sector. Mostly our handicraft items are exported to foreign countries where they are bought in dollars, so when the exporters will convert them it would fetch them higher values,” Tramboo said.
Joint secretary, PHD Chamber Of Commerce and Industries, Tariq Rashid said though falling rupee value is not a good sign for the overall economy as things get costlier. “But there is silver lining that exports get higher value in return. Kashmir’s handicraft is mostly dependent on exports so that is a good time for this sector.”
Besides handicraft, experts believe that tourism and IT sector will also reap benefits of failing rupee as both sectors deal with foreign exchange. Most of the IT companies here work for international firms, similarly foreign tourists may get tempted to visit Kashmir this time when their currency have higher value.
The rupee touched a new low of 72.91 against the dollar recently as rising crude oil prices and a wider current account deficit continue to weigh on the local currency.
The rupee has depreciated more than 12 percent this year against the greenback so for, making it the worst performing Asian currency in 2018.