It would be folly to "engineer" growth by stimulating exports. We should just let the market work. I am not in favor of forcing software engineers in India to work for less than their market wage just to make Infosys more profitable. Similaryly, I am not in favor of spending tax money to keep Re artifcially undervalued to help Infosys. It is also a mistake to think that only the software industry can drive growth. Growth in general is driven by three factors : (a) Capital accumlation/influx (b) Productivity growth in the form of education/infrastructure/technological change (c) economic liberalization such as relaxing draconian labor laws, encouraging influx of capital etc. If these are inplace, all sectors of the economy will grow. If you think software engineers are so great, go compete with americans on the basis of greater productivity instead of pleading with the govt. to keep the exchage rate low. Afterall, american software companies dont get the US govt to keep the dollar undervalued! Keeping the rupee undervalued will distort the market and make us too dependent on the export sector. If hillary clinton comes to power in the US, she might impose Tariffs on Indian software products...that will really hurt then!
