{UAH} Car companies for rupee route to Africa
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2:22 PM |
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Car companies for rupee route to Africa
New Delhi: The Indian automobile industry has asked the government to consider a rupee-based payment mechanism for trading with African nations as they face a major hurdle in dollar-denominated payout. African nations including Algeria, Nigeria and Morocco among others are among the major export markets for the Indian automobile industry. However due to a fall in commodity and crude oil prices many African nations are facing problem in dollar payments.
"We have approached the commerce ministry for rupee trade with the African countries as we are facing a challenge in dollar trade in these big export markets like Algeria and Nigeria," said Society of Indian Auto-mobile Manufacturers (SIAM) deputy director- general Sugato Sen. He said these countries cannot make payments in dollars and that is impacting the trade with these nations. "So we have asked the commerce ministry to negotiate rupee trade with these countries. It is a long term bilateral thing and these countries also need to study it," said Mr Sen.
Of the total automobile exports of around $8.86 billion in 2015-16, Africa alone accounted for 30-35 per cent of the total overseas shipments in value terms. In the past during the US sanctions on Iran, India had developed a rupee-dominated trade mechanism with the middle-eastern country.
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