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`Re appreciation hitting exports'

Our Bureau

New Delhi, June 8

The export prices of Indian products in major exporting sectors have become uncompetitive by 10-12 per cent on an average compared to competing countries' products as a result of rupee appreciation against the US Dollar, according to a survey conducted by industry chamber FICCI.

The major sectors, that together constitute about half of the country's exports, are textiles, garments, electronics, handicraft, machinery, bicycle, chemicals, processed foods, carpets, auto components and medical instruments. Profitability has fallen in most cases. In the case of manufactured items of metals, profitability has come down from 12.6 per cent to as low as 1.6 per cent in the last few months, according to the survey.

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