The government will not regulate the Rupee movement as the exchange rate of the Rupee will be determined by the market only, the Commerce Minister Kamal Nath said on Monday.

“The exchange rate of Rupee will be determined by the market only. The government on its own cannot calibrate rupee,” he told newspersons. However, Nath said the government would take necessary steps to help exporters meet adverse impact of rupee appreciation and this can be done by increasing refund of both state and central taxes.

Export woes

He indicated that the Commerce Ministry would soon hold talks with various Export Promotion Councils to examine how some of the state level and central taxes could be refunded to exporters.

Earlier, in his address to the Chemical and Allied Products Export Promotion Council (CAPEXIL), Nath exhorted exporters to change their business strategy to meet the emerging challenges. He suggested that exporters should step up exports in currencies other than dollar.

Talking about trade pacts India is pursuing to enter with various countries, Nath said except a select list of items, the comprehensive economic cooperation agreements are aimed at eliminating duties with countries and blocs like Singapore, Thailand, Japan, ASEAN and European Union. “India has to enter into trade agreements because it needs to integrate with the rest of the world, he said.