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RE:Reality Check
by Sriram Subramanian on Jul 25, 2007 09:26 PM

A very educated response, Indian Muslim. However, I do think that small scale exporters will be widely affected: especially in the garments and handicrafts businesses. And another thing we have to keep in mind is that while these exporters compete with each other as their goods leave Indian shores, they do have a certain monopoly power to buy labour within the villages (where they usually operate for the lowest cost labour). So if an exporter of Kanchipuram sarees for example, feels the pinch of the appreciating rupee, he can always lower the wages of the labourers(who are amongst the poorest classes with no social security).


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Rupee rise: How you are affected