There is no doubt that labour productivity is very low in India ( due trade union & archic labour laws).However, we should understand that Indian Cos have to bear large hidden cost due to beaurocractic hassels which need greasing of palms & high cost & time delays due to poor infrastucture, again due to political & beaurocratic corruption. Just kick out govt & beaurocracy and our exports would become competative. Most ministries are avoidable or atleast their role needs drastic cuts
RE:I dont think so!!
by Sameer Bhagwat on Aug 06, 2007 02:25 PM Permalink
I is no agris with comentry of you Vijay sir. America is no goes down it is. But other cuntrys like Chaina, India and other asian cuntrys is goes uper and uper it is. I is sory if I is hurted filings of you. Thank you.
Theoretically manything can be said & written butin practical terms only those exporters who are in the line try to be afloat since once the market is lost is ever lost which is known to everybody. The problem with this country is that people who are not acquainted with any particular area/process decides the course damaging everything. This authority spoils everything in India. Till now none has talked anything against the govt service people or govt run institutions whose contribution is hardly anything compared to the resources they consume from India .With a strong rupee one can take it granted that we, who have inexperience in marketing value added or branded products will be out at least on product exports which are in raw form. Any common product available in India is available at a lesser price everywhere in the world. Some sectors are boosting while others are striving to survive. The main problem is that the benefit does not reach the deserved ones. Here also the decision is taken by another who is in a glass house.
RE:rupee appreciation
by NARENDER Sharma on Aug 06, 2007 02:25 PM Permalink
Rupee need to be placed at 32=IUSD within this year ..... This will encourage IT companies to check the over growth of salaries and thus reducing cost .
There are multiple examples where IT engineers pay excessively because of high individual liquidity . Like Two Bedroom house these guys pays 18000 in Gurgaon where 1. No public transport 2. No good hospitals 3. No security 4. Excessive waterlogging. 5. Excessive Traffic conjession.
If the salary of these guys comes down by 30% we can expect lower rentals atleast.
I will add my observation about the regular 'IT' guy. While most commoners who unexpectedly come into good fortune would retain some degree of judiciousness in dealing with new found wealth, the 'IT' upstart behaves like how a water buffalo would if let loose near a clean pond (rough translation of an old Malayalam saying) that is meant only for drinking from.
That the average 'IT' guy is just another mediocre product of India's educational system and that his fortune is entirely due to the appearance of a very big opportunity in a growing economy and has nothing to do with his aptitude (of any kind) or intellect is also reflected in the manner he spends his gilt edged pay packet.
Not for nothing is India dubbed the world's 'IT coolie base'.
THAI BHAT WAS 45 TO US$1, A YEAR BACK, TODAY IT IS 30 TO US$1, AND STILL THEY ARE SURVUVING MERRILY. THE PROBLEM WITH INDIAN EXPORTERS IS THAT THEY LOVE TO CRY AND EBG SO THAT THE GOVT. OF INDIA DOLES OUT SUBSIDIES FOR THEIR INEFFICIENCIES. WE ARE NOWHERE NEAR THE QUALITY OFFERED BY OUR ASIAN COMPETITORS WHICH ARE NOT ACCOUNTED BY OUR POLITICAL MASTERS. THE TAX PAYER'S MONEY HAS BECOME THEIR WAY OF PAYING FORTHE INEFFICIENT AND QUALITY CUTTING INDIAN INDUSTRIES . WE LOVE TO TALK BIG BUT CANNOT EVEN GO NEAR THE FIGURES ACHIEVED BY SMALLER THAN SMALLEST TATES LIKE TAIWAN. ITS HIGH TIME WE FACED THE REALITY AND STARTED EFFICIENCY AND QUALITY ACCOUNTABILITY FOR ALL EXPORTERS. ALL OVER THE WORLD INDIAN EXPORTS ARE DREADED FOR THEIR QUALITY AND EVEN IN A OUNTRY LIKE BANGLADESH, INDIAN WHEAT IS DREADED SINCE OUR EXPORTERS SUPPLIED WHEAT MIXED WITH 25% "UNFIT FOR HUMAN CONSUMPTION" QUALITY. THEIR SHOULD BE A QUALITY MONITORING CELL AND NOT A HEARING CELL FOR THE CRYING BABIES.
RE:STRONGER RUPEE
by Sameer Bhagwat on Aug 06, 2007 02:19 PM Permalink
Sugato sir why is you writened in caps it is? Plis you is writing in small letars in next time it is. This is we all frends humalest request to you it is. Sory if I is hurted filings of you. Thank you.
As growing of Indian Rupee against US $ it is good sign of progress and may be a short term loss for exporter but same time a good sign for inporter to import goods. And when chinese RMB also having good value against US$ they are increasing price of their products. Same way indian exporter can also increase [rice for their products and ask for more money from their buyers.
RE:Good for india
by sibby mathews on Aug 06, 2007 02:16 PM Permalink
Unlike the Chinese exporter who is now more in a position to command his price compared to those from other countries, the Indian exporter (chiefly from the IT sector) could find his business volumes evaporating if he takes the liberty of making his services dearer. This is because the Indian exporter's competitiveness is already wafer thin; what with sky rocketing business costs (that include cost of land & other assets, the much hyped about employee remunerations etc.) back home. It is a fact (albeit one that is not a fraction as talked about as the more 'glamourous' indices benchmarking economic growth are) that India leads the developing world in having the steepest rate of increase in business costs.
Already, China, the Philippines, Eastern Europe and other parts of the world are fast catching up with India in the latter's trump card business; the capability to vend low end and cheap (thus far) IT services for the developed world.
China's export capability, on the other hand, derives it's greatest strenghts from facets that are much more sustainable and real; it's very high productivity, highly developed infrastructure, much lower corruption in business, the extreme ease with which businesses can open and continue and above all the single minded and dedicated focus by the administration on improving both business climate.
Let the Indian exporter try to play catch up with the Chinese on strategies such as pricing; and the make believe world of 'Indian economic
It is good if the Rupee is apreciating against the dollar. All our stalwarts of Indian corporates can shop across the globe to takeover the forign companies in USD which will make a cheaper deal for them. Thus instead of relying on exports buyout the companies aborad and create more value........
RE:Rupee appreciation
by Chandu on Aug 06, 2007 01:32 PM Permalink
But the corporate indian are only less than 1%. Most of our folks live in the village and are farmers..what about them..unless they get richer, India cannot become rich. India is less of Mumbai,chennai,bangalore,hyderabad and Delhi and more of Bihar, UP, Rajasthan and Orissa.
RE:Rupee appreciation
by saikat dutta on Aug 06, 2007 02:19 PM Permalink
Dear chandu the thing is that those village people donot care about Rupee appreciation, and it donot effect then atleast directly. Hence we should stick to the discussion about the effects of appriciation of rupee. I think so .
Whats happening currently more inflow from foreign countries more particurly from US from people who are working in IT. There is huge disparity between people living here in Govt or priviate & public sector undertakings. The common man could not survive with their earnings in India. Exporters problems are temporary and by incressing the productivity they can manage the situation very well.
RE:RE:Positive article
by on Aug 06, 2007 03:19 PM Permalink
Stronger Rupee = Stronger India
Let me ask a question first.
What type of economic strength is preferable to India? A) A strong Indian economy fueled by its cheap labor due to a weaker rupee against dollar, where the Indians end up working in shifts, late nights, whole nights and what not%u2026 only doing low profile jobs which foreign companies want to offload to India, so that they can concentrate on high end works and become even better. For instance in IT field, providing BPO services, support and maintenance work for products%u2026
OR
B) A strong Indian economy fueled by its strong innovations and products, no matter whether the rupee is strong or weak against dollar.. where Indians work only in regular office hours of 9 to 6, developing cutting edge technologies and solutions, selling our world class products both inside and outside India. For instance in IT field, imagine operating systems, compilers, databases etc all coming out of India..
I do not deny the fact that the IT boom in India came to a large extent because of (A). Well and good, we have had the benefits of our cost being cheap in western markets due to a weak rupee against dollar.. We have had our share because of this advantage in the past 2 decades..
But at the same time doesn't it make sense to move towards (B), instead of crying foul against rupee becoming stronger against dollar?
What a pity! Indian IT companies are feeling bad because rupee is becoming stronger against d
