Friends stop fighting.. this is just a 'virtual' growth but not in reality. Whether Rupee appreciates or depreciates, common man in India finds it's very difficult to meet his both ends. Still thousands of farmers are dieing, millions for poor people who dont have any basic needs like water, electricity, transportation, medication, etc;
Indias major export is cotton and agricultural products which are produced by 2/3 of indian population. How will we export this if rs appreciates.. only by cutting their profit margin. So. our farmes will become more poos. even though their purchasing power increases..
Beleive me these IT & BPO sectors will not get effected bacause of small changes in the exchange rate as their profit margin is very high. The salary of the employees is also high so they will cut their salary and still they will export. Can our farmes do the same? Can they cut ttheir income and compete with other world in the agricultural market? Please answer...
So Its the common man other the Govt employess who will get effected with lower wages.. as their products are not exported and demand for their product in domestic market decreases. and people import from where ever thyey get it cheap.
So then.. Why is congress allowing the Rs to appreciate? To curb inflation "virtually" I say virtually bacause. by Appreciating INR the prices will remain same or decrease but eventually the income of people will also decrease (leaving govt employees).
So please for ogd sake.. knoa that govt is only playing to curb inflation virtually by klling exports.............India's growth is not dependent on Exchange rate.
