Rupee rise means lesser amount for 1$. So if yesterday, if you had 1$, you could exchange the same with 45 Rs., but today you will only get 40 rs. This is a serious concern because, imagine if you were working in the US and you earned in dollars, so the amount of money you are making in terms of rupees value becomes less, if rupee strengthens. Also the immense growth which we see India has encountered in the last decade or so has come from software exports, outsourcing etc. Now, imagine, if for one particular service, you used to get 1$, which till yday made you 45 Rs. at home, but today you will only get 40 Rs. Same with all other services for which we depend on USD. This will effect the salaries that are paid to all the IT employees as the amount of "money actually made" would decrease, because the US client wont pay us more if the INR value has risen. hence, this will also result in India losing it's "Cost Advantage" over other countries. We would have to come up with a new advantage that we can give to our clients in the US.
Okay i think i have written a lot...sorry about that...hope you got your answer and a bit more info...:)
