A few days back rediff had a article where the columnist had said how will rise in rupee positively like for e.g. if u are giving 100/- rupee tip to the waiter today it wont be that much value and tomorrow when value of rupee rises if u give him 50/- he will be very happy as rupee will have that much value. today we are seeing this article. I wonder who is right?
RE:rupee rise
by arun patwardhan on Jul 25, 2007 10:19 AM Permalink
Dumb man! Read both article both echo the same. Lower local prices means, the thing which you can buy @ Rs 60/- can be available for Rs 50/-. Be a waiter to see how it will keep you happy then!
RE:rupee rise
by rajukunji on Jul 25, 2007 10:42 AM Permalink
tumhala kay mhanayche aahe arun patwardhan?today they are saying rise of the rupee is bad before they said rise of rupee is good so?
With factors suggesting that the rupee could rise, we could see a scenario of an increasing percentage of goods and services being offered locally, which would lead to lower prices and hence curb inflation further. Then why should we worry about? It is the cash rich Murthys, Premjis etc are affected as their income fall due to strong rupee. Why should the common man worry about their loss of income. All those companies have made money at the cost of common man in India. Let the prices fall in India and let there be smile on the face of middle class.
RE:Rupee rise
by Dontharaju RaviChandra on Jul 25, 2007 09:59 AM Permalink
What about the lay offs that might occur in the IT industry? Wouldn't a common man be affected? The IT industry has a very big work force, with the major companies having more than 50k employees each. The common man would suffer in a situation like that. Premjis and Murthys have enough money to keep them and their children happy for ages! If Indian exports decrease then its the common man who would loose. Small scale industries which depend on exports would be affected badly. Just because owners of big companies are gonna frown, that does not mean the common man will have a laugh. Think rational. Growing rupee is definitely a good sign, but how long can we offer our own goods to ourselves? Gradual increase or decrease is acceptable, but a sudden change can lead to dangerous consequences...
RE:RE:Rupee rise
by shovon dasgupta on Jul 25, 2007 10:19 AM Permalink
Even in that case, it will have an impact on not more than 2 lakh people..but it might bring some smile to the rest if the govt thinks about small scale industries and importing goods..so if the rupee rise affect 0.2% of the indian population and brings smile to the rest 99.8% let there be rupee rise..the govt does not need to think about premjis and murthys..
RE:Rupee rise
by the unique on Jul 25, 2007 09:51 AM Permalink
As metal import becomes cheaper, cheap imports from countries like china n other counties will increase which will result in loss to small companies which are suppliers to automotive or domestic products.
RE:Rupee rise
by Raza Khan on Jul 25, 2007 10:05 AM Permalink
I fully agree with sweetguy. However, the author of this article seems to be too much caring about the fortunes of the Murthy's, Tata's & the Premji's !!! :)
RE:Rupee rise
by Praveen on Jul 25, 2007 10:02 AM Permalink
then Foreign mkts wont purchase our proucts cos of rise in rupee. they will hav to pay more dollar to buy indian product which will hit indian economy. It will lead to more supply than demand stage in indian mkt.It will hit indsutries like agro, textile etc. So rupee value shud be evenly poised.
Well rupee rise might have some impact of companies that export but its equally good for imports.Currently we import fuel, Food items including wheat etc.
Poor people of our country cant even enjoy things that grow locally here for eg. Alpanso mangoes. All growers want to export and get more money. Now things will be a bit more balanced.
Brain power in India, which use to move overseas for more money... will be resticted because conversion factor is lower now. less money more pain... no gain
Sortware companies now want to work 6 days a week because they posted millions in profit last year and want billions this time. They dont even think of people. I dont think even after this rise.. they would be in any loss.
Lets enjoy this new rise.. but I hope this will remain at this point of 40INR for 1 USD.
Our IT industry hasn't tried to move up the value chain and focused more on the services (cheap labor) which is not really difficult to replace. Similar thing happened in Mexico in 1994 where millions lost their jobs. We haven't created any eco-system based on our growth like China. RBI has to intervene.
This article seems to have been written by a man who has been bitten by export problems.The article would have been better if it would have shown the positive impacts.
IT companies are making money and a reduction in profits should not be a problem,until and unless they make losses.They are the main cause of inflation.
The savings generated to the tune of 10% on fuel bills by the govt is a super plus saving atleast 17000 crores.
It is high time that the govt stopped subsidising the exports and let the industries stand on their legs.Now we will know the worth of our industry.
As far as jobs are concerned india is in a progressing mode with still lot to do in all sectors including infrastructure (IT also),I only feel that we would require further more manpower in the future.
Why be so sad if the apreciating rupee takes care of inflation.Take a bag and go to the market and see how inflation is killing people.(Atta Dal ka bhav Malum Karo).
Falling interest rates in the housing sector could be a great advantage to the common man.
Let market forces take care of the Rupee and let RBI mind its own business.
Well if the Rupee is strengthening against dollar... let the export firms increase their product prices... Why burden on government for reducing taxes and duties whatever... Have we ever heard in past when rupee was declining and the US markets reducing their prices to sell their products in India ? Then why shud we worry ... Let them take our services at higher prices if they want to... The trend if is reversing let it happen.. India is getting richer day by day and why shud we worry if they are gonna pay more for our services..
RE:If Rupee increase is affecting Why not Increase ur Prices !!!
by on Jul 25, 2007 10:06 AM Permalink
"let the export firms increase their product prices"....ha...dude its not a free market where the producer of the good can charge whatever amount he/she wishes...besides local competitors there is stiff competition from other countries...take China for example...More than 50% products being used all over the world are made in china....their government besides providing the exporters with subsidies have tied their currency to the dollar (apprx 6 or 7)...however their currency is actually worth a lot more...this they have done in order to dominate the export market...
and has this made them worse off....answer is no...today it is the fastest growing economy in the world...the government needs to intervene in such a way that it can keep a check on inflation as well as keep our exports competitive....
RE:If Rupee increase is affecting Why not Increase ur Prices !!!
by page on Jul 25, 2007 10:16 AM Permalink
you are worried only about exports, by sell at lower prices, you are advertising the low quality of your products
India, like US is a net importer, i.e. we import more than we export.. therefore rising rupee will benifit the economy much more than its adverse impact. I therefore feel that RBI should not intervene in the market determined rupee valuation process and should ensure that rupee remains firm against the dollar.
Hi Guys.. Dont think that because India`s Economy is doing wee thats y rupee value is coming up...!!!NO!!! its the other way.. As u all know that the Rupee is linked with American dollar and this American has lost Value of Dollar as they are investing loads of dollars for IRAQ War. Its not only Rupee, each and every currency which is linked with dollar is comeing up only bcos dollar is going down..for example Dirhams in UAE, Dinars in Kuwait..India is still the same as it was..
