Manas, "1- 1/2 of the people will lose jobs and People will stop getting hikes [the purchasing power of people will infact go down and heads will roll] ". There will be labor reallocation to different sectors of the economy based on India's strengths. But there will not be a net decline in unemployment. For e.g. when India opened up 1991, this began a major reallocation of labor from agriculture to other sectors fo the economy such as manufacturing and services. This was indeed tough for the people involved but it was for the overall good. There is economic theory and no practical data to prove that exchange rates affect overall unemployment. "2- Indian and Chinese economy is still a fraction of US mammoth and dependent so much on US money (Check WB/IMF) Figures." What WM/IMF figures? Dollar bills are green pieces of paper. We cannot eat dollar bills or live in them. What matters is India's productivity, which will improve when the Govt. keeps its hand off the market! "Check why the Chinese Govt is controlling their currecy (BTW US wants both Yuan and INR to appreciate a lot such that JOBS and competitiveness will move back to America and Asia will move back to its age old begging days. US is in fierce fight with the Chinese on this issue)" If currency manipulation is so important, why does the US not manipulate its currency. Again, what matters is how productive we are. We cannot grow the country by manipulating the currency!
