Still not getting an idea what is the impact of this. Of course, the exporter will have a negative impact. With the inflation also on the rise, what is the real impact of this on the common man. Will it reduce the prices in the future??How the buying power of common people going to increase. Most of the upper class are the ones who earn money in dollars, either through direct exporting or being part of a company which is exporting something (mostly software) to US. So looks like this is bad for the common man??I am not sure..
RE:Stronger Rupee
by Dragon Cares on Aug 06, 2007 01:08 PM Permalink
Hello Chandu: All these kind of hype in the media are really a bullshit when it comes to reality. Because, these people are just seeing the Upper class people shopping in the big malls in the big cities; and nobody cares about a common man who is living in the rural areas; untill all the villages are equiped with proper infrastruture like roads, medical facilities, schools, etc, no meaning of talking about 'India is growing faster'. For all these media guys and CEOs & politicians, "India is growing faster" bcoz they only see metro cities like Mumbai, Chennai, Delhi, Bangalore & Hyderabad; and they tend to close their eyes to see the realities in the villages. India could never be a match for Korea/Japan/China with respect to common man's cost of living and basic facilities available to common man in the rural areas.
RE:RE:Stronger Rupee
by Chandu on Aug 06, 2007 01:28 PM Permalink
Thanks for the clarifications guys. As Gandhiji said " the soul of India lies in the villages". And the villagers are basically farmers. How this will affect the farmer ? I think the agricultural products also become overpriced in the international market due to this and will bring down the farmer's fortunes. OR will it reduce the cost of his production by bringing down the cost of fuel and other essential things which are imported.??
RE:Stronger Rupee
by KJ on Aug 06, 2007 12:54 PM Permalink
Its good for the common man. Appreciating ruppee will help in restrictive RBI intervention of buying dollars from the market which will curb inflation to a fair extent. Imports will also become cheaper to control monopolistic practices in certain sects (Cement, Steel etc). Cheaper imports should also bring down the costs of cars and other medium-high end products. However, at the end of the day, the local industries dependant on exports will be constraint which might lead to downsizing in certain industries (textiles, SSI's, leather, etc)
