New Delhi: PHDCCI president-designate Rajeev Talwar on Thursday expressed hope the rupee will stablise with pick up in the economic growth though the depreciating currency is "music to exporters" at present.
Talwar, who is the CEO of realty major DLF, would be assuming the post of president of industry body PHDCCI next month, replacing Anil Khaitan. "The falling rupee is music to the exporter and something to watch out for the importer. Global factors will impact the rupee and hopefully when the GDP growth picks up the rupee would stabilise," said Talwar in an interview to PTI.
He further said the good part is that India's internal market is so large that "you can depend on that market for GDP growth push". There is certainly going to be an impact of the depreciation of the rupee, global factors do play a part but India is somewhat insulated because of its internal demand.
The rupee has depreciated around 13 per cent to breach the historic low of 72 level this year so far due to a host of factors such as global trade worries and rebounding oil prices. On rising prices of petrol and diesel, Talwar said the big point is that the central government has a fixed percentage which they get from taxes.
"... it is the states which have very high (taxes) and probably that is one of the main sources of their revenue. So perhaps in the states they need to give relief to citizens of that very state," he said. The president-designate also supported demonetisation, saying it was aimed to check black money.
"Now the tax revenue is going up, the number of taxpayers is going up. So I think overall it was a step towards the modernisation of the Indian economy. Both Goods and Services Tax (GST) and demonetisation were fairly in the interest of the country," Talwar said.