Cheers Indian economy .It has now come to the stage of super power comparing with other super power in the world .Now time has come for india inc to concentrate their business spreading to other developing asian country where our rupee is stroger than their currency and slowly overtake and rule them in as economic super power and solve the poverty of many asian countries.After all asian countries are so far dependent on USA,UK last 400 years .Now time has come indian inc should concentrate export to SARK countries,west Asia,south east asia.India can now play a crucial role developing these asian countries and get larger market than USA,Uk .Imagin India can rule 1.5 billion people china market along with 1.5 billion people other countries along with india's 1.2 billion people market .With Gdp growth of 9% yearly and strong fundamentals of indian inc ,nobody can stop India to become economic superpower with in 5 years .
RE:Rupee rise against doller
by shirish punde on Oct 03, 2007 10:05 PM Permalink
I think this is probably a better script than what we see in bollywood movies.....and of course it will never come true... If you wonder why.....just search google for images of chinese cities....and I bet you will be mesmerised by the infrastructure investment that china has made...
and by the way ...even if India Inc can play crucial role in its own home country ..it will go way ahead than others...the problem is India inc majority of the times produces inferior products....and of course not to mention the affinity of the people for the "MADE IN USA" products!!!!
RE:Rupee rise against doller
by abboral boral on Oct 04, 2007 09:09 PM Permalink
Your analysis is very good and I appreaciate .Here lies the quality .I am sure Indian products will improve with more business ethics surpassing China and other countries with in 5 years .This is not my day dream but a forcast .One should understand the power of intectualily of Indian young brain which is no match to other countries .With more no of young brains remain after 5 years in India than other countries
RE:Rupee rise against doller
by vinamra singhai on Oct 03, 2007 09:02 PM Permalink
most people come here to talk serious stuff and give opinion while some are here to write about their daydreams, fantasies and myth.
RE:Rupee rise against doller
by TS on Oct 03, 2007 09:53 PM Permalink
well said. With rupee getting stronger, already people in export oriented business started loosing jobs.( for example Textile industry..). Soon IT annd other industry to follow.
The first real test is to come out stronger from this transient phase. Forget about being super power in five years.
1. Exporters will shut down business 2. China to emerge in new technologies besides serving as manufacturing hub. The disadvantage to Indian exporters will be advantange to China, Korea, Taiwan, and other emerging economies, and slowly Srilanka, Bangladesh, pakistan, etc 3. FIIs, and foreign brokerage houses, who are shifting their focus on India since the returns are significant. The dollar flow will continue to exists as FII investments, thereby depreciating dollar value. Eventually all rupee appreciation will be repatriated and leave we Indians will virtually nothing. 4. Indian NRI and high skilled labour class who repatriate there savings, will eventually loose.
There are many other drawbacks in Rupee appreciation and the only advantage will be in terms of lower oil import costs which anyway India will find its own oilfields, and would not be significant advantage.
RBI, Fin Minister should considers all these aspects instead of allowing a free dollar fall.
RE:impact of rupee rise
by ASHOK on Oct 03, 2007 09:34 PM Permalink
Rupee $ rate can be easily impacted and corrected once India buys Nuclear Technology and Arms from USA. Afterall we have made most of 220Billion$ surplus by dealing / exporting goods and services to US.
the title indicates that there is a great idea being described.... but there is nothing, except a irrelevant parrallel being drawn between the Japan car makers and Indian IT companies.
doesn't the writer understand that IT is a manpower intensive industry. the cost depends on salary straight. In the car industry the cost of the car does not depend that much on salary. it is more about material and capital investment.
morover the salary difference between Japan and the US was not much, as opposed to our IT situation today.
RE:useless article
by chini jain on Oct 03, 2007 08:03 PM Permalink
thrs nothing related to the topic... no strategies even hinted... move the production... and the cost of tht??
RE:useless article
by vinamra singhai on Oct 03, 2007 08:53 PM Permalink
well said and he is comparing a product-based company with a service oriented industries..very unfair. Also in 1980's japan was among developed nation.
Auto car manufacturing industries are technology driven..not labour intensive...
RE:useless article
by Praveen Kumar on Oct 03, 2007 08:55 PM Permalink
This strategy will work, but instead of moving the projects to the US, they need to identify other developing nations probably with a weaker economy, like Vietnam is emerging as a preferrable offshore base.
With rising Re. India's cost advantage decreasing so need to inovate to increase productivity. This is good for India in long term though in short time we have some job losses. With inovation we can better compete with world. It is history repeating that Japan auto industry started working in US on cost advantage. As years passed they worked on Quality & today Toyota is biggest auto company in world.May be this is starting point for Indian IT & ITES companies to move from good to great. May be due compultion to servive make them look their current buisness model in new way. This will deinitely will help nurish the talented Indian youth.
its the dollar thats declining and not a the ruppee which is appreciating..against all other currencies the ruppess is still the same (or even worse)..
RE:get the facts right
by DEVADAS SHENOY on Oct 03, 2007 08:03 PM Permalink
stupidity, rupees is getting stronger with even gulf currencies.It was 12/- now it is 10.50.
RE:get the facts right
by Jayesh Ved on Oct 03, 2007 08:31 PM Permalink
Gulf currencies do not have their own identity on the parameters of economic fundamentals. Yes they have oil exports but currency fluctuations are subject to much above this lone feature of their economy. GCC currencies are pegged to US$ and behave in propotion to US$ behaviour. so if UAE dirham has slid to 10.50 it is just the reflection of $ slid.
IF US Federal Bank increase the interest rates by 1% then our stock markets will down to less than 10K and the rupee to 45. India is a hyped market. If I buy a apartment for 40L then I may get rent of 8K but in US if I buy a apartment for 200k(80L) i will get a rent of 900(36K). Don't forget that Indian loan rate at 12% but in US at 6.5%. Indian RE market depends upon next buyer. If u didn%u2019t find a next buyer ur investment is a dead investment. Keep the rupee down to bring more $$ to India and run the show for some time. I am glad if $ down becos I can bring my lot of Rupees to US and can be rich fellow :))
So by this idea the american companies wont outsource jobs to india. instead the indian companies will work in america to ful fill the american needs. Doesn't the author think the jobloss for India. Indian comapnies becoming global companies will benefit only the company and not our indian people. They will fire 100 people here and employ 100 there in US. Is this a better strategy to work. Think folks its not a worthy idea. Common man ?
RE:This won't work for us
by Super User on Oct 03, 2007 08:32 PM Permalink
In a capitalist model, the common man is given the last factor considered while taking decisions. Our economy has grown and will continue to grow thanks to the capitalist attitude of the West i.e. shifting their operations to cheaper locations like India to save cost.
Now, that Rupee is growing against the Dollar, perhaps Indian companies may shift their operations to China, Sri Lanka etc. to save costs. That is the nature of the beast. If we want to take the interest of the common man, then we must elect CPI into power, which is the worst thing we could do.
It is a world we have asked for, now we must also be ready to pay a small price for all the benefits we have enjoyed so far
There is basic difference in Japan manufacturer moving to US and Indian companies moving to US. Japan is an economy with high labour cost. So when they move to US they are either getting labour at same cost or lower. But India can not have this benefit as worldwide the companies opening their centers in India to avail cheaper and skilled labours. Moreover our exports are not from hardcore manufacturing but from softwares that employs more of human brain than of those dominant machines.
RE:cost of production outside India//
by Maryjorse Gandmar on Oct 04, 2007 04:09 AM Permalink
But Jayesh human brain we are not using in IT at all. Are you saying IT people coming up with new inventions, new medicines, new theorems etc etc ? No Jayesh IT people simply doing coolie work in C Java so that Murthy will expand Murthy angadi. IT work is for people with 10th standard skills, little bit of arithmetic, logic, you are set for lifelong IT.
RE:cost of production outside India//
by ASHOK on Oct 03, 2007 09:26 PM Permalink
Jayesh You have a very valid point, but as of now India has moved up on value chain and we have software projects which can be managed from within US.
