Dear friends, It seems many are using the blogs to abuse others, instead try to look into the merits and demrits associated with appreciation. First thing how rupee appreciation is affecting the common man life. Our concern must be this, whether one live in india or abroad doesn't matter. As a common man wht profits we are gettign ruppe is appreciating, which is attracting the global millionaries, by which the middle class is not getting oppurtunity to do or start a business. 20% of indian population and there families are happy because atleast one in there family is settled in abroad and earnign for them. Surely the appreciation will have adverse effects on there income. Don't think of S/W's or engineers who will get good amount in UAD. But think of labours etc who are working for 6 to 10K in gulf and other african countries. Why don't we have a look at china, it has almost 10 to 20 fold dollar investment, eventhen they are trying to make there economy stable. Which is giving global competativeness and and increase income for people, and increase jobs. Rising economy is a boom if the governemnt can actually take care of people, and decision makers are real intellectuals.Where as in india decisions will be driven my most corrupt individuals or unqualified.
So in no way rupee appreciation is benefitting to a indian commom people. So please stop saying india rising, but try to understand what benefit a common people is getting in their daily livinghood.
RE:Rupee Appreciation
by Chola The Greatest in the Universe on Jul 30, 2007 09:35 PM Permalink
Though we can understand your narrow outlook from the viewpoint of a family who is hosting one NRI! But country's overall improvement depends NOT only on Software success. Rupee appreciation is because of local factors coupled with non-performing USD. You can subsidise USD so that some exporters can make more profit every quarter.
Indian companies can acquire more foreign companies with more USD in their hands(cheaper to acquire). They must start looking at the appreciation from business oppurtunity.
RE:Rupee Appreciation
by vishal gupta on Jul 31, 2007 11:29 AM Permalink
I feel like laughing on your comment, dear....and it seems you have no knowledge of economics as such forget the world economics you dont have the basic knowledge of it. First let me know from where did you get this figure that 20% Indian families are hosting there one member in foreign land...i think you have someone of your dear family member their in US... neways let it be... now let me tell you it is not that rupee is rising but it is the non-performnance of dollar and it is not only against but if you compare it with any major currency of the world dollar is going down...ok then it is benefiting india in many ways the imports are getting cheaper and the fiscal deficit(I dont think you know the meaning of this term) is falling... just for handful number of exporters you are feeling so much ...
RE:Rupee Appreciation
by avinash khairnar on Jul 31, 2007 02:19 PM Permalink
Have U thought of rest 80% people who have to live and work in India ?. I think It will be great that our Rupee Value rises. and therefore our purchasing power will rise.
Govt can take benefit out of it. Purchase dollars from the open market in bulk. Two advantages. One it will stop the rupee to gain further and secondly, govt will have a huge sum of dollars to pay off for the deals. Govt can close some of the deals with this. Alternatively, the money can be kept for emergency circumstances.
This is not only "The rupee rise". Actually not only the indian currency that has gained against dollar. But every currencey of world either that may be Bhats, Yen. Pound, Euro they also have gained against dollar. Not only India other country export has also suffered. The main impact has already been seen in China. It has already increased the price of it exportable goods in the foreign market.
Lastly it can be said as the doller has losed it value against all the currency of world.
Now for the exporter:
Why don't they export their commodity in Pound, Euro and other. They have not lost their value in the international market. So stop crying.
RE:RE:Not only INR
by thomas fate on Jul 30, 2007 11:09 AM Permalink
Perfect. We should start accumulating Euro instead of dollar. If you havent read it, this was WMD (weapons of mass destruction) which Saddam was trying to use. But the truth is Dollar is going down, cannot hold on to its current value (unless another war is started), so no point in accumulating (depending on ) dollar anymore.
RE:Not only INR
by Vishal Goyal on Aug 01, 2007 05:33 PM Permalink
You are wrong in this point. Only Indian ruppee is rising against each and every currency of the world. Chinese curreny has grown only 2% as compared to 10% gain in ruppee. If dollars has depreciated against all currencies then this is not harmful for India.
its really very confusing scenario. on the one side the rising rupee is good from inflation point of view while on the other hand our exports are going down and is a cause of concern.
RE:Indian have more pride in themselves ...
by srinu reddy on Jul 30, 2007 01:30 AM Permalink
Because for others:be like a roman when you are in Rome. for indians:be like an indian where ever you are.
RE:Indian have more pride in themselves ...
by sunny on Jul 30, 2007 11:31 AM Permalink
Hey great quote for indians.. I really appreciate the second one..
RE:Indian have more pride in themselves ...
by Confused on Jul 30, 2007 01:21 AM Permalink
...also partly because they are Unable to adopt the american attitude and honesty so they remain in ghettos like in metropark edison in New jersey etc...Hahahahahaaaa........most mediocre people i have seen in my life...
For all you guys, who dont want the Rupee to strengthen, just coz your IT/ITES industry will suffer, pls note the following:
1.) Generally a strong economy has strong currency & vice-versa. So, as India gets stronger the Indian Rupee will rise too,
2.) The USD is bound to fall against all currencies. In the coming years, it may fall by more than 50%. This is coz there are 'Fundamental' Changes going in the world economy. Its not 'business-as-usual'. Power is getting shifted from west-to-east. US is under unprecedented debt levels. Already more than 50% of world growth is coming from emerging BRIC economies.
3.) I have alrdy said numerous times, that its only a matter of time, before our IT industry goes on a decline. THis is coz, first-of-all, they arose just coz of the Rupee-USD arbitrage. Now with the Rupee rising (or conversely USD falling) & with growing Salary-levels in India, its not long before there will be a slump in IT industry,
5.) Slump in the Exports/IT industry will have little impact on the Indian economy, coz, unlike China, the Indian GDP comes mainly from domestic consumption, and not from Exports,
6.) Our IT industry has been a BIG failure in the domestic market, where foreign firms like IBM, Accenture etc have clinched billion-dollar deals from Indian companies. Its a shame that, they (indian IT) lost-out in their own-turf. Its also shows there stupidity by ignoring the huge/growing domestic market, with no currency-risk.
RE:Dollar will FALL
by rohan patnaik on Jul 30, 2007 12:13 AM Permalink
Fool most of the jobs come from these IT companies and Exports .. Loss of jobs mean less domestic consumption so poorer GDP .. Indian Economy is bright bcoz of corporate pumping money to the economy.. Once they find India expensive they are gonna say goodbye and it is dooms day again.. Because we do not have any industry stong enough to support this huge population...
RE:RE:Dollar will FALL
by lax on Jul 30, 2007 12:27 AM Permalink
Have u heard of the coming Retail revolution, Manufacturing revolution, 2nd agri-revolution led by corporates etc.
True, there will be a temporary pain when the IT industry goes under, but our IT industry is nothing but a 'sweat-shop' for the americans.
Are they (IT industry) doing any worthwhile patent-based research? Are they into product-development like Microsoft/Apple/IBM/HP/Sony etc? Are they into superconductors & chip development??
Fools like you have to understand that, unless our IT industry is into hi-tech work where they develop products in our own-right (ie under our name & not contract-work for americans), they will never come-of-age.
More than Narayan-murthies/Premjis etc, I admire Ambanis/TATAs/Birlas/Mittals, who will make india a true-global economy.
Ofcourse, IT industry did make its contribution to the Indian economy, but its days are now numbered, unless they go up the value-chain & become rivals of Microsoft/Intel/ Apple/HP/Sony/IBM and not work FOR them, as they are doing now.
RE:Dollar will FALL
by RajneeshChandraMohan Jain on Jul 30, 2007 12:28 AM Permalink
Europe and USA put together is less than half the population of India.
It is silly to think that only foreigners could come and give us jobs.
God pretty much created all humans with same Raw materials.
There is absolutely no reason why on What one man can do in one part of earth can't be done by another man in another part of earth.
Nature's law are same every where.
I lived in USA for 20 years .. Currently I have been living in India since 2002 ..
Percentage of stupid people in both the countries are about the same ...
Human Brain pretty much work the same whether they are an American or Indian.
RE:Dollar will FALL
by Confused on Jul 30, 2007 01:12 AM Permalink
dear rajaneesh, human brain may work same but what about the attitute and corrupt mind? most of the indian's have poor attitute and are more prone to corruption vis-a-vis americans.
RE:Dollar will FALL
by RajneeshChandraMohan Jain on Jul 30, 2007 01:34 AM Permalink
Whether they are Americans or Indians human mind considers the following 3 parameters before doing a corrupt activity.
1. Probability of getting Caught. 2. Potential reward for not getting caught. 3. Potential punishment for getting caught.
You don't see Americans doing petty corruption because potential reward is small in comparison to their income.
Once Indian GDP improves, you 'll see those petty corruptions vanish in India.
When it comes to big corruptions and Scandals like Enron Americans are no different from Indians.
Indian Jail Environment/Life is much more humane to Jail life in USA. That do discourages some crime in USA.
RE:Dollar will FALL
by Confused on Jul 30, 2007 01:49 AM Permalink
Thank you rajnesh for giving the good picture on the other side of the coin, but still i feel that the average american is more honest, the corruption not only in money matters but they are true in their relationships unlike indians who tells something and mean something and what to show something else...
RE:Dollar will FALL
by IKesh Singh on Jul 31, 2007 04:08 PM Permalink
Not Really. Indian IT's & BPO's will charge more for outsourcing as will other firms in the world, like in China & Spain. $ has depreciated there as well.
