'Adjust rupee rate, implement key reforms to make India competitive'

Adjustment in exchange rates and reforms in areas like land, labour and logistics would help enhance the competitiveness of India's trade in the global markets, research firm CUTS International (Consumer Unity & Trust Society) said.

"Given the important role that trade can and should play in our economic growth, relevant government agencies in India need to adjust exchange rates in a manner that they make our trade more competitive, without much pressure on our inflation," it said in a statement.

It also said the government should take immediate steps both at the centre and state level to bring reforms in areas like land, labour, capital and logistics.

Over-valued rupee and inadequate structural reforms are affecting India's trade competitiveness in the global market, it said adding exports of goods such as petroleum products, gems and jewellery, readymade garments have come down both in value and volume terms.

Global factors too are contributing to the slowdown of the world trade, CUTS International said.

During April-February period of this fiscal, cumulative exports declined 16.73% to $238.41 billion (Rs 15.86 lakh crore), as against $286.3 billion (nearly Rs 19.05 lakh crore) in the same months of 2014-15.

Imports too dipped 14.74% to $351.8 billion (nearly Rs 23.40 lakh crore) in the 11-month period, leaving a trade deficit of $113.38 billion (Rs 7.54 lakh crore). The trade gap was $126.29 billion (nearly Rs 8.40 lakh crore) in the same period of 2014-15.