What are the measurements to asses, the companies in which small investor invest their savings for appreciation as most of the companies earning lot of money but they do not pay reasonable amount of dividend . They do not care about their share holders.
Due to rise in ruppee, our imports have become cheaper. due to which our local domestic industrial products can not compete with the chinese products. Chinese products have now become cheaper by 10%. This would result in the slow down of Indian industry growth and new job potential will also be reduced. In the other hand, there is no control of indian govt. over the metals. Steel, which is the major commodity in the iron and steel industry, is rising. But if we see the actual scenario, steel prices has reduced in other markets and it will be furthur reduced due to dollar weakning, but result is totally opposite. Big houses, instead of reducing, they are increasing their prices.
The rupee/dollar rate matters only if we continue to export. Of course, we will continue to import oil. Interfering with Rupee rate can only be a short term gain. The real need to open up our economy further to private sector (including the Agriculture sector). In the last 60 years, the government enterprises have not achieved much. Their return on investment is low or negative. Only private sector can really produce wealth (because the owners have a vested interest in making profits, and will fire inefficient workers and adjust to changing market dynamics quickly). Govt should focus only on Military, Education, and Health and supervise (not overregulate) the private sector. Even the Agriculture should be opened up to private sector, if you want it to grow. The infrastructure can also be created by the private sector efficiently. We don't need govt to do business.
RE:Where is the benefit of a stronger rupee
by kadwa sach on Jul 31, 2007 10:14 PM Permalink
Because they are already highly subsidized. The gains from rupee rise have not yet reached the point where they wipe out the subsidy.
