Rupee devaluation hits machine tools' production in Rajkot

Rajkot, June 16 (ANI): The devaluation of rupee has hit the local machine tools manufactures here.

The rupee has devaluated 13 percent since February this year and 24 percent since last August.

The Secretary of Machine Tools Manufacturers Association (MTMA), Dinesh Khambhayta told reporters about the impact of rupee devaluation on production in the factory.

"Actually, the production of machine tools is considered under the category of capital goods. So, whenever, a recession occurs across the world, the first impact is on the capital goods. The future investment by the entrepreneurs declines and there is an adverse impact on the demands of the machine tools. As compared to last year, the production of the machine tools this year is lower to nearly 30 to 40 percent," Khambhayta said.

He added that poor infrastructure in the city was the main cause of lower production of the machine tools.

"The present government has not taken any progressive step to check the slowdown of the rupee devaluation. Industrialists have also cited that the government has failed to take any initiative to control the slowdown of the depreciation of rupee. There is no improvement as such," he said. (ANI)