If you are a importer of finished products and catering to domestic consumption without any value addition, rising rupee is good news again since it allows you to purchase more units of the same product and the cost per unit comes down and high volume sales of imported items in thedomestic market is then possible. If you are a exporter of raw material without any value addition, then a rising rupee is bad news since your client will be forced to pay more dollars for your product and this will force him to look at other sources of cheap raw material since cost is the only factor that determines his purchasing behaviour as there is no value addition. If you are an exporter of finished ethnic products like bangles, bindis,lehengas,jewellery etc, rupee appreciation has little relevance since the profit margins in these items are very high and the clients will be looking for purchasing from you only since other countries cannot compete with your ethnic items. If you are exporting high value finished products like cars ,electronic items etc which as such is not very much in India, then the product commands the price in the market and still you do not have to worry about rupee appreciation. This is the reason why countries like Japan, America , Europe have strong currencies because the govt has a job to do in the form of running the country by providing good roads, infrastructure,Continuous Electricity, Water, etc etc to its citizens, who inturn repay the govt in the form of ta
