The Effect of Inflation on Indian Textile Export during FY 2009-14
Keywords:
Indian Textile Export, Inflation, Cost Inflation Index, Foreign Exchange RateAbstract
This paper seeks to evaluate the effect of Inflation and foreign exchange rate on Indian textile exports between FY 2009-10 and FY 2013-14 for five years. The period of FY 2009-14 is selected because of last foreign trade policy is implemented during 2009-14. This paper includes both quantitative and analytical research type to achieve the objectives. The objectives of the study are: to ascertain the real value of textile export in rupees during 2009-14 for the five financial years by considering the cost of inflation index rate and to incur the real value of textile export in dollars during 2009-14 to 5 years by considering the average rupee-dollar exchange rate. The textile export data have been collected from the annual reports issued by Ministry of Textile between 2009-10 and 2013-14. The cost of inflation index data has been collected from Ministry of Income Tax between 2009-10 and 2013-14. The nominal growth in textile export values looks very attractive but from the study it is found that real textile export growth is moderate after considering the cost inflation index and also average values of the US dollar.
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