India Uprising , and i am proud of it . Lets together strive today to reach stars , i know most of my countrymen are still under poverty line , but what i can do is to extend support to those who are not watching this . Let there be a balance in the indian society and today we pledge we will not let our country to get divided among rich and poor . God Bless .
The only reason rupee is rising today is because PC is forced to take hard decision regarding Inflation that too because congress ended up with bloody nose in recent elections due to price rise.
Had rupee not apreciated inflation level would be at about 8 % just about enough to throw congress out of power.
All the factors mentioned by our beloved writer were present for last 5 years... so why NOW !.
Our Foriegn currency reserves were not built in a day ! and everybody had seen the situation, request not to be so naive.
It happens in India buddy !.
Now for the biggest scam how many people would have made billions due to sudden appreciation in Rupee ! ?
Stakes in Foriegn Currency in biggest Gamble in the world. How many win the sweep stakes ? !
RE:HUMBUG
by Navneet Thakur on Jun 19, 2007 05:13 PM Permalink
Very right..because of this inflation. Wouldn't have inflation happened to this level, we would not have suffered wih the indian rupee appreciation to this level in a short span of time. This is the big concern for exporters as well for FDI's. How come in the article, he menioned that will help, where it has more negatives than possitives. But surely, it is for a shorter span of time and will see indian rupee depreciaing to few levels.
RE:HUMBUG
by shanthakumar rp on Jun 19, 2007 05:06 PM Permalink
Calling an article from Mr.Venkatesh who is an authority Humbug is ridiculous. Appreciation of Indian Currency is due to growing Indian and weakness in the US Economy.
The article says that at Rs.45 to a dollar, India's GDP would have been $900 million and that it is become a trillion because of the appreciation of the rupee by about 10%.
But 1000 millions make one billion and not one trillion. Trillion means a million millions. In other words, trillion is 1 followed by 12 zeroes (1,000,000,000,000)while billion is 1 followed by 9 zeros.(1,000,000,000)
RE:Is it a trillion or a billion?
by rahat shaikh on Jun 19, 2007 04:51 PM Permalink
Dear, it is just a typing error. Instead of typing 900 billion, they typed 900 million.
Historically the government used to control prices for many products but kept the forex on a tight lid...now for many reasons it may have to do vice-versa. Bring back pricing control. ithas attempted this with pharma, cement and sugar but has aimed at the wrong place..it need to include PROPERTY in the list of price control and watch inflation go poof and competitiveness of India being protected against a raging rupee..today the greatest inflation is in land prices..they need to be frozen or say 10 years to prevent speculators from making india inc uncompetitive - already it companies may defer purchases as margins are dented due to rupee and wage increases...property can be a counter balancing tool given that for most companies it is now the largestpart of capital... Strange that i should argue for price control in a capitalist era - but then if we have to win the international war then this is one way else we will go like the other east asian economies - sick due to growth and rising reserves (read inflows)..cut the speculation... control prices not just CEO salaries :-)
RE:Ill effects of rupee appreciation can be curbed..
by Siddharth Pandit on Jun 19, 2007 05:12 PM Permalink
Argue this case with the newly listed Real Estate companies in the Stock market. Bringing this policy in the investors would loose at least a couple of % points. The Idea is about getting competitive. Better Infrastructure will improve the productivity many folds and areas outside the cities will become accessible to the companies to spread the development and growth to the rural areas.
Are we ready? No. We still have the mindset of colonial days. We still take *pride* in being developing country.
It is a welcome development. It would present short-term problems for exporters. But would improve quality of life for all Indians in the long run. Get ready for confusion in market for short term.
On the other hand, I believe that 10% drop has happened because more of weak US Dollar than strong rupee.
Rupee would be universally acceptable currency after the demise of US Dollar, hopefully.
