Rupee @ 40 against $ does not make india a bigger or better economy, it is the overall growth that matter.
Point that should be considered while we just talk about the conversion rate.
If 1 Rs is equal to 1$ Indian economy will be thrice as compared to USA. Does that mean india and Indians have everything better then the Americans? No.
Whatever may be the case of IT/ITES/BPO the fact of the matter is India lacks way behind even the third world countries when someone inquires about the basic ammenties that an Indian gets.
We hear a lot of Ho-Halla about million dollar flats in India which are at par with houses in US. This is a great new as we will get the best in India, BUT the moment someone leaves the boundary walls of 4.5 crore flat "INDIA" remains the same, be it roads, police, traffic, Noise, Pollution, Animals on Road, Traffic sense, Bribe, Electricty, Water, Drainage and what not. Out of 100 crore only few lakhs are employed in IT.ITES and BPO and that does not make India a candidate for developed Nation. Neither does a flat of 4.5 crore make india stand parallel to US.
India has a long way to go before it can even claim to be a developed nation.
We need to realise that unless we have the infrastructure and logistics we cannot even get closer to China. Being an Indian I realise that it is hard to digest that we have to many problem that needs to be tackeled.
Example Local Shanghai "Mumbai" has Electricity, Water/Drainage problem for last 30 Yrs
RE:Reality Check
by mangesh on Jul 25, 2007 09:56 PM Permalink
I apreciated your thougts. We need to work on our real problems like electricity, infrastructure, water, corruption etc.
RE:Reality Check
by Rakish Poulose on Jul 25, 2007 11:34 PM Permalink
Hello, Mr. Muslim, You live in a dream and you have no idea how people in third world countries live!!! Hence, you say India is worse that that! You said that you have digestion problem. Take pills for it and do your homework. Mumbai has never had electricity problem! Drainage problem is caused by the people who live there but filling up drains with garbage. Once people like you stop complaining and and stop destroying what is already there, India will soon move towards being a developed country. Cheers.
RE:Reality Check
by albert mendonca on Jul 26, 2007 02:47 AM Permalink
"Mumbai has never had electricity problem!" Have you ever stayed in bombay?? And your comments make me feel like you've come straight out of a school!!!
RE:Reality Check
by Indian Muslim on Jul 25, 2007 08:56 PM Permalink
A Rs at coversion rate of 40 gives an excellent opportunity to all the Big Wigs who are supposed to re-pay in USD. Like majority of Engg Industries, Pharma and Process industry this is the best time for them to re-pay the loan.
IT/ITES/BPO has an excellent margin not to forget they are the blued eyed boys for pushing the overall growth in India so they are the ones who will be least impacted.
Only the small time exporters who have minimal margin [Which is rarest or rare] might get affected if they are compiteting at a very low margin against other exporters.
The fact of the matter is all 33 major currencies world over have appriciated against dollar so in nutshell it should not even impact the small time exporters
RE:Reality Check
by Sriram Subramanian on Jul 25, 2007 09:26 PM Permalink
A very educated response, Indian Muslim. However, I do think that small scale exporters will be widely affected: especially in the garments and handicrafts businesses. And another thing we have to keep in mind is that while these exporters compete with each other as their goods leave Indian shores, they do have a certain monopoly power to buy labour within the villages (where they usually operate for the lowest cost labour). So if an exporter of Kanchipuram sarees for example, feels the pinch of the appreciating rupee, he can always lower the wages of the labourers(who are amongst the poorest classes with no social security).
