Contrary to the common crap stuffed over our throats that currency appreciation is not good. It is a fake theory that depreciation will enhance exports etc. Currency appreciation should be used to repay dollar loans from World Bank, our crude oil imports value will also come down. This will help in curbing inflation.
With regard to exports Indian exports should shift focus from low end export of raw materials, coolie software projects, to high end products to improve their export market. The whole country can not suffer for a few selfish rich exporters.
RE:RE:Ruppee Appreciation a Boon
by Bengal Tiger on Apr 30, 2007 07:26 AM Permalink
Mr Murthy its you who is the armchair economist because of people like you, India will always remain a third world country exporting third rate products. So, you need a walk in the park and need to smell the roses.
By the way India is also, exporting Mercedes manufactured in India. Texas Instruments say that their best research job is done in India.So, who says hi tech stuff is not possible in India? Pessimists like you would ensure that India ends up worse than African countries.
So, wake up from your deep slumber, because Rbi itself has ensure the appreciation just to counter inflation.:) Unless, you doubt the effectiveness of RBI's highly knowledgeable team (maybe you think that you are Alan Greenspan), but who cares, wake up the world is changing.
RE:[object MouseEvent]
by Bengal Tiger on Apr 30, 2007 07:53 AM Permalink
Where did i make a statement about scientists and engineers.:) So, get off the commode and start using your brains.
RE:Ruppee Appreciation a Boon
by Murthy on Apr 30, 2007 07:35 AM Permalink
Indian products are third class catagories to the extent of 90% and Indian labour pool is 600 million plus out of which only 5% are graduates, 95% are unskilled exporting either price sensitive commodities or low end goods which can be produced from China and Asean with equal ease.
I already said top end segment will not be affected even if $1 = Rs 1.
What about rest 95% ?
Just tell me a simple question. Will you buy a Chinese watch for a Swiss price ?
And why are you comparing econmies like Germany which sell the very highest quality in the world in their segments like machine tools. They sell worldwide due to their exceptionally high quality despite cheaper products available from China.
German workforce is 45 million and all consumed in high end exports not uneducated and unskilled 95% of Indian workforce which have to be producing something if they are to stay employed.
All current boom is due to exports booming since employees of IT, ITES, and good exports make 3-6 times more money than normal domestic industry catering to domestic market. Then these privilaged group buy expensive good like properties and expensive cars like Honda Civic and stimulate the entire economy of India. If demand from this segment dries up = back to growth rate of Indira Gandhi's time of 2-3%
Use your BRAIN and be a real well wisher of India considering that we have to produce JOBS for 600 million of Indian youth who are not all educated to do IT coding jobs or highest tech exports like germany.
Top end jobs will stay, but what about 95% of the rest. Do you want them to become unemployed and become naxalites ?
And no Mercedes are not being exported from India since an Indian manufactured Mercedes loses it's premium value.
Customers in Europe and USA say, why pay first world prices for a third world product ?
It is 1. Mercedes brand that commands 3-6 times the price of a similar Toyota. 2. Made in Germany stamp.
See interview of Mercedes CEO in India -
What about exports from India? When will your second plant in Pune get into production?
We will lay the foundation stone at the Chakan plant in May this year. Cars will start rolling out of the plant in early 2009. We are looking at an additional 20-30 per cent capacity from here. Currently, we already produce more cars than are sold in India.
Still, DaimlerChrysler doesn't have any plans to export cars, as we did for a brief while in the past. Exports are not part of our Indian strategy at the moment.
Also other cars that are exported out of India are SOLD CHEAPER abroad than competing brands otherwise no one will buy them.
RE:Ruppee Appreciation a Boon
by Bengal Tiger on Apr 30, 2007 07:51 AM Permalink
Mr Murthy, first off all you are way off track, we are here discussing about currency appreciation and how to use it to our advantage. Employment of majority of Indians is a different topic altogether.
If India had a population of 8 million (just make them all scientists and voila u got it !) REALITY = 1100 million POPULATION, and 600 million youths and 22 million babies born EVERY YEAR, I would be HAPPY BUT GIVEN realities, I prefer to keep currency stable at the current levels, and export out way out to generate employment.
