1. Exporters will shut down business 2. China to emerge in new technologies besides serving as manufacturing hub. The disadvantage to Indian exporters will be advantange to China, Korea, Taiwan, and other emerging economies, and slowly Srilanka, Bangladesh, pakistan, etc 3. FIIs, and foreign brokerage houses, who are shifting their focus on India since the returns are significant. The dollar flow will continue to exists as FII investments, thereby depreciating dollar value. Eventually all rupee appreciation will be repatriated and leave we Indians will virtually nothing. 4. Indian NRI and high skilled labour class who repatriate there savings, will eventually loose.
There are many other drawbacks in Rupee appreciation and the only advantage will be in terms of lower oil import costs which anyway India will find its own oilfields, and would not be significant advantage.
RBI, Fin Minister should considers all these aspects instead of allowing a free dollar fall.
