Hi, Our country is mainly an importing nation,especially, petroleum products, chemicals,electronic goods,machineries etc. So, the rise in rupee value will help us to pay less amount.
Just looking into the UAE - dirhams Vs INR , the conversion has dropped from 1 AED = 12 Rs to 10.50 . The indian laborors are toiling hard in hot sun , when will they see a developed india getting an equivalent amount in india living as a first class citizen, increasing one's purchasing power, less fuel cost, travel and see different locations , an automobile for everyone...this is the dream of every indian citizen...for that indian rupee should rise !!!!!
To Shed the slave mentality to work for others....
RE:rupee has to appreciate more
by poonam dil on Jul 25, 2007 11:28 AM Permalink
1 AED is now 10.98 or 11 in some cases. Which is still great. The day it drops below 9, expats will consider returning home. As the middle east is also seeing inflationary trends.
RE:rupee has to appreciate more
by swamy on Jul 25, 2007 11:10 AM Permalink
Dude, those cheapos will then search for a better place to become slaves. No one forced them to go in the first place
The rupee rise should theortically benefit the common people of India. But is it happening? No it is only good for politiciaans who make big money in INR and the industrialist/businessmen who cheat their mother land by not paying proper taxes whatever paid also looted by the parud politicians.
over-taxes India...all Indians...make INR buy more....dont let $ buy more goods/ services in India...import obligations shall not make India compromise on anything...insulate economy from external economical shock-waves or land-slides...indian system isnt the finely working equation or machine to handle such things...
Its sad to see that most Indians are foolish by being jingoistic about a strong home currency. The rupee is getting stronger not due just due to the rosy picture painted about India but due to a concerted effort by the US to keep the dollar weak so that its exports can rise. This has helped US to bring its unemployment levels to all time record lows. The rupee strength is also due to currency arbitrageurs (ECB borrowers) who are borrowing in Japan & a few other countries at less than 1% & deploying those funds in our equity markets for double digit returns. They are also doubly benefited by the currency appreciation. Foolish Indians don%u2019t realize that due to rupee appreciation, exports become uncompetitive & exports will end up losing orders especially the manufacturing sectors unlike the IT sector which can shift some of its developing work overseas. When the industries in the export sector close down there will be a huge loss of jobs & the task of regaining the lost export orders is difficult. Once these corporates which rely on exports start making lower profits especially the one%u2019s in the Sensex & %u2018A%u2019 group stocks, the whole India story would evaporate. The rupee rise is mainly due to a few rich industrialists who are making money by borrowing huge funds abroad through ECB%u2019s & playing in the Indian stock markets at the cost of the foolish common man who is taken for a ride by the India story spun by these rich industrialists with the help of the
RE:Indians taken for a ride by the rising rupee
by poonam dil on Jul 25, 2007 11:34 AM Permalink
Chinese exports are costlier by 8%, especially infrastructure related. So are they worried? I dont think Indians should worry much as the entire global indices are overheated. Japan's pension plans and insurance sectors are investing more in our markets than the arbitrageurs. Indians should not participate in the stock rally as when these biggies pull out, it will be devastating. They are here for quick returns. Solid companies like Wipro and Infosys are suffering because of this mentality. Of course the current valuations didn't make sense in the first place. Invest in FDs I say. Be safe.
These software companies are giving heavy payment to their employes.10 times more than other industries give.Let them reduce the salary thier losses will be automaticaaly reduced.They shud have kept the rupee point in mind while giving the salaries.many of them are getting packages in the range of 12-15 lacs per annum which is too much.
RE:Software firm shud reduce salaries of thire employees.
by Gautam Joshi on Jul 25, 2007 11:11 AM Permalink
People in few industries are getting high salaries, 10 times as per yur estimate, is not because the management of company are their uncles or relatives. They are earning that salary because the company is earning equivalent profit because of the employees work. And yes, so if tomorrow the company will earn less profit it will affect these employees salaries. More profit more salaray, less profit lower salaries. So when you say that these salaries"is too much" means that just because you THINK the salaries seem "10 times" more then others' salaries, does not mean the salaries need to be reduced...salaries need to be reduced if the profitability of the comapany is reduced.
this is all shit...going by that arguement one wud say highly devalued currencies are finest things to happen to any country... indian xporters at best try to out-bid another third world counterparts...again using devalued currency...and now talk abt increasing the world trade share...the indian market is relatively self-contained or self-relaint...unlike other countries who rely on imports to meet many of their essentials...its bit too complex to xplain....currency conversion is mostly an emotional or political decision...most european/ western countries command a premium no matter whether they produce much desired/ most essential goods for human living..its time india uses INR in all bilateral and international trade...or mixed basket...ultimately it is about deciding whether u want $ to buy more goods or INR to buy more goods...weak INR will not buy anything...and $, overpriced buys everything...its kinda western setup to outsource cheap goods/ raw-materials from countries like us...and other economically, militarily and politicaly vulnerable countries...actively supported by some key people in bureaucracy and some lobbyists who pitch for it to build a case...
As Indian ecomony Booms , Indian Rupee has to appricate, you cannot keep it artifically low. it is good becuase now importing of basic needs like petrol and kerosene will become cheaper.
RE:The rupee rise: How you are affected
by sam on Jul 25, 2007 10:56 AM Permalink
The Rupee rise is not due to Indian economy booming. It is due to USAs concerted efforts to keep the dollar weak & thereby cornering the major part of world trade. This has helped them to bring unemployment to all time low levels. The Re strength is also due to currency arbitrageurs who are borrowing abroad at 1% & investing in the Indian stock markets where they are able to get double digit returns along with double digit currency appreciation returns.
I am not an Economist, but elementary common sense says that a strong currency should always be welcomed by the citizens!
Let us see how we can benefit in this scenario
1)We should invite FDI or form JV's in all core sectors or allow foreign companies to invest in core sectors , which would be very attractive as the entry cost is very much lowered as normally most of these companies import most of the plant & machinery. This would also give an incentive to invest in Core Sectors like Power,Infrastructure,Healthcare and may be even Defense.
2)We should encourage Indian Companies to invest /acquire foreign companies. Effectively they would be doing it cheap(Infosys is already doing it)
3)Government should allow free convertibility of Rupee to allow individuals/HNIs to invest in foreign businesses/assets freely
A strong rupee always increases inward looking and free and cheap availability of Goods and Services as far the country is concerned , which is good for masses,inflation and country in the long run
RE:How India should benefit from a strong rupee
by sam on Jul 25, 2007 10:52 AM Permalink
A strong rupee may make imports cheaper. But where is the govt allowing that to happen. They have countervailing duties & other import licences acting as a deterent to import cheaper goods. This is the reason why we are not able to import cement which is cheaper in other countries whereas the cement producers are continously raising prices inspite of govts efforts to stop them doing so.
RE:How India should benefit from a strong rupee
by DSK Rao on Jul 25, 2007 11:22 AM Permalink
My dear learned friend , please study the figures of Indian Exports and Imports to understand the tilt. Indian Imports are much higher than her Exports! and that itself should justify a strong rupee. As far as USA trying to weaken the dollar is concerned , it is as true as the WMD's in Iraq. USA is in deep economic troubles due to the Wars it is supporting in Iraq & Afghanisthan and also the large scale outsourcing happening(which definitely is helping countries like India) at the cost of USA citizens. Even after doing their best to create Jobs in USA , the unemployment figures are alarming !So , presently USA & it's dollar are on a very weak wicket.
