The "Made In India" Movement Is Becoming Popular.

In the past year, Reuters has reported that the rupee has appreciated almost 1/4 against the euro, and many exporters of clothing, leather, handicrafts, gemstones and jewelry in India are powerless. India's exports have gone through the worst performance since the global economic crisis in 2009, which led to the "India manufacturing" Movement promoted by Prime Minister Modi in India.

In 2014, when Modi was elected Prime Minister of India, he promised to stimulate investment and promote employment. He made every effort to build India into a platform for production and export to realize the export oriented economic prosperity of India. During his visit to France and Germany this year, Modi also vigorously promoted the "made in India" campaign.

To cope with the weak external demand, the Modi administration is planning to increase its spending budget for infrastructure, but the fiscal stimulus seems to be inadequate. In view of the lack of alternative measures, New Delhi is ready to rely on the India reserve bank to adopt more monetary policies to restore India's international competitiveness.

A senior trade official in India said that if the rupee continued to appreciate, all the indications indicated that India was entering another difficult year. In addition to taking other measures, the India government looked forward to help from the central bank.

Statistics show that in March this year, India's commodity exports contracted for fourth consecutive months, and merchandise exports accounted for about 2 trillion of India's total economic output, accounting for about 16%. In the 11 months ending February this year, India's exports to Europe dropped by nearly 2%, and its share in total exports dropped to 18%, offset the increase in exports to the United States and Africa. In pairs Europe For example, in the 2013/14 fiscal year, the export to Europe increased by 15%, while in the current fiscal year there was a slowdown.

To be sure, the stronger rupees are not the dark side of India's third largest economy in Asia. India imports nearly 450 billion dollars a year. Some analysts say the key point is that it looks very tricky for Modi to make the export targets he proposed earlier.

According to India media reports, in April this year, the India government announced the foreign trade policy of 2015 ~2020, aiming at achieving the export target of goods and services trade reached 900 billion US dollars in 2020. Under the framework of the World Trade Organization (WTO), the new foreign trade policy has integrated the original export incentive plan into two systems: the India commodity export plan and the India service export plan.

"In some markets, India Become no Competitive power " The export of tea to Gaurav Poddar, head of India Limtex company in the Middle East oil producing countries and former Soviet Union States, said, "we are deeply hit by the rouble." What Boda means is that the Russian Ruble fell sharply in the second half of last year. By the beginning of this year, the rouble exchange rate fell by about 1/3 compared with half a year ago.

India trade officials said their exporters needed help. In the fiscal year ending March, the rupee appreciated 11% against a basket of currencies, and exporters quickly lost competitiveness.

Lalhan, chairman of the India export organization Federation (FIEO), said: "India exports are in the intensive care area and need immediate oxygen inhalation". (S.C. Ralhan)

However, some economists say the Reserve Bank of India has faced the arduous task of containing the rupee continuing to rise. On January and 2 this year, the Reserve Bank of India bought a net foreign exchange equivalent of US $20 billion in the spot foreign exchange market.

Varma, an economist at Nomura Securities in Mumbai, said: "India can choose to join the global monetary war by cutting interest rates, but that is not our choice, because we are still fighting inflation", Sonal Varma said.

Over the past year, the rupee has appreciated almost 1/4 against the euro, and many exporters of clothing, leather, handicrafts, gemstones and jewelry in India are powerless. India's exports have gone through the worst performance since the global economic crisis in 2009, which led to the "India manufacturing" Movement promoted by Prime Minister Modi in India.