I am no economist, but practically seeing, the idea seems to be stupid. Here what u r implying is that to save one to two rupee appreciation effect, u double your cost by moving manufacturing or production to higher cost companies. Now where u will move. Other asian countries are witnessing the similar trend. Chinese Yuan appreciated 5%, Singaporian Peso 10% and so on. So u r left with countries such as Zimbabwe or South African nations whose cost is not appreciating. But what about when they decided to do so? Again shifting the production?? Well that is not solution. Moreover if u shift ur production to America, the production cost will be so higher that your profit margins will surely face the music because as of now your production cost is too low due to cheap labour in India.
