more-in A strong dollar and a weak rupee will benefit the IT industry based in Visakhapatnam, albeit temporarily. However, for importers it is a big blow. Even as for shipping fraternity, the latest exchange rate is considered for payments, for seafood exporters who send their consignments in large quantity from Visakhapatnam, it is a gain. “Though we are for a strong rupee, the IT and ITES sector will stand to gain due to devaluation. Our contracts are signed for payment in dollars. A strong dollar will certainly fetch us more for conversion into rupee,” admitted IT Association of AP president R.L. Narayana. However, he said some firms might insist of renegotiation on the contract. Those renewing licences from foreign companies would be forced to cough up more. Pharma units, which have a good presence in North Andhra, will be the major beneficiaries. AP Chambers of Commerce president G. Sambasiva Rao said on the whole, the current situation would not augur well for the Indian industry. He said for project cargo and other imported components and devices, one would be forced to pay more. Turnover Visakhapatnam region accounts for a turnover of over ?2,000 crore from IT and ITES sector. The pharma industry is estimated to have a turnover of ?15,000 crore. Entrepreneurs say a strong dollar will lead to further increase in the prices of petroleum products as India depends on imports to meet the lion’s share of its requirement. This is expected to have a cascading effect on multiple sectors including the cost of transportation. The travel sector mainly overseas travel will impact the revenues of the travel operators and airlines. Visakhapatnam has flights plying to Singapore, Colombo and Dubai (one stopover at Hyderabad). Mr. Sambasiva Rao said the present situation might not last long. Santosh Patnaik

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