Yen fall may not hit Indian exports

THE RECENT DEPRECIATION seen in the yen is not expected to impact India's exports to Japan as they are not competing with domestic manufacturers, but it could jack up Indian imports of electronics, machinery and auto components, according to the Federation of Indian Export Organisation.

- MUKESH JAGOTA

"India's exports to Japan are largely of goods like apparel and marine products that they (Japanese companies) do not produce locally so these products are not competing with the domestic manufacturers. So despite the depreciation there would not be any impact even though these products may get costly for consumers there," director general and CEO of FIEO Ajai Sahai said.

Weaker yen could, however, hurt some of the bigger Indian companies who have borrowed abroad in the Japanese currency.

The hedging options could however mitigate the impact.