US rate cut to help Indian exports: Nath

Commerce and Industry Minister Kamal Nath has said a hefty cut in the US interest rates will have a positive impact for the Indian exports, but industry leader Rahul Bajaj felt the move will further hit exporters.

"The US Fed's decision would rather boost Indian exports to America as it would raise demand in the biggest economy of the world," Nath said at the World Economic Forum annual meet in Davos.

He said the US rate cut would not affect the Indian economy, which has strong fundamentals.

However, industry leader and Rajya Sabha Member Rahul Bajaj said that the US Federal Reserve's decision to cut interest rates could adversely affect Indian exports as rupee would further appreciate against dollar due to increase in flow of foreign investment in stock market.