I completely agree Vijay. One thing that I find hard to understand is why economists think that exchange rate works to the overall advantage of country's exports. IMO only thing this advantage creates is lower productivity. Exporters are happy because they can make lot of money due to depreciating rupee and buyers want it because this stuff is cheap due to currency conversions. But in the long run there is no incentive for exporting companies to do any R&D to be competitive. Overall economy loses on R&D front and in long run falls back on competitiveness. As a result these exporters keep pressing the govt to keep the value of rupee low so they do not have to work hard. They are selling their stuff because it is cheap, not because it is high quality sought after stuff. Appreciating rupee will create a need for these companies to be competitive in global market and produce things that are high on quality and create a name for India in high quality products.
