NMCC voices concern over rupee appreciation

New Delhi: The National Manufacturing Competitive Council (NMCC) has expressed concerns over the impact of appreciating rupee in the manufacturing sector, especially with reference to the small and medium enterprises (SMEs).

'The rupee has appreciated by around 10 per cent in past 12 months, which is hurting the manufacturing sector, especially the SMEs. This is a cause of concern,' Dr V. Krishnamurthy, Chairman of the National Manufacturing Competitiveness Council, told reporters on the sidelines of a press conference here on Tuesday.

He added that though the Government was looking into the issue, measures needed to be taken quickly to provide relief to the SME sector that has close to 65 per cent share in the manufacturing sector.

Dr Krishnamurthy also allayed apprehensions that the high growth of over 13 per cent in the manufacturing sector would lead to inflation. 'Inflation is not only due to growth in the manufacturing sector. Rather, emphasis on key manufacturing sectors such as textile, food processing and auto components will help contain inflation that has come down to 4.8 per cent,' he said.

Speaking on the high share of the manufacturing sector in the GDP of other countries, Dr Krishnamurthy said, 'The Indian manufacturing sector required growth of 12-14 per cent over a decade to create jobs for the growing workforce. And even if this growth is maintained over the next decade it would lead to only around 25-26 per cent of the GDP share coming from the sector as against a target of over 30 per cent.'