It is an accepted fact that rupee appreciation has adversely affected the exporting units, especially textiles. But it is also widely disputed that this phenomenon brings prospects too. Are the exporting units debating still on these issues? Or are they affected by any other related issues? This survey-based article focuses on the issues that confront the knitwear exporting units functioning in Tirupur, the hosiery hub of Tamil Nadu. It was interesting to learn how the units had sustained the impact and also handled some of the major concerns.

Recent times have witnessed a highly volatile rupee vis-à-vis the US dollar. Much of this volatility has been attributed to the velocity at which the Indian economy is growing, and also to the recession in the US economy. The latter has been proved by the fact that the US dollar is weakening against all major currencies. Although it is welcome news for all the Indians, a section of Indians has a major cause to worry about. And it is about this section that we are going to discuss in this article - the Indian exporters. They do not seem to be happy with the US dollar weakening against the Indian rupee. Obviously, they have raised their voices against this on almost all the platforms.

As widely seen, every economic phenomenon has two sides and these sides have been argued as issues and prospects. This phenomenon of rupee appreciation too, has two sides. While one side brings in prospects to the country in the form of increased capital inflows, an upward boost to the economy and cheaper imports, the other side throws up a major threat to the exporters in the form of thinning profit margins and revenues. As a supporting statement Associated Chambers of Commerce and Industry of India (ASSOCHAM) has recently declared that rupee appreciation is set to increase exporters' profit margins by 15%. According to Venugopal Dhoot, President of ASSOCHAM, the reason for this positive impact is the imports becoming cost-effective. A fast-growing economy and highly technology-intensive industries will make Indian exports more competitive. But, the ASSOCHAM press release of July 9 had a totally different picture of the impact of this rupee appreciation on Indian exports.

Treasury Management Magazine, Managing International Finance, Indian Economy, Technology-Intensive Industries, Indian Exporting Companies, SWOT Analysis, Tirupur Knitwear Exporting Units, Risk Management, Management Strategies, Managing Value at Risk, VAR, Financial Management Practices.