With factors suggesting that the rupee could rise, we could see a scenario of an increasing percentage of goods and services being offered locally, which would lead to lower prices and hence curb inflation further. Then why should we worry about? It is the cash rich Murthys, Premjis etc are affected as their income fall due to strong rupee. Why should the common man worry about their loss of income. All those companies have made money at the cost of common man in India. Let the prices fall in India and let there be smile on the face of middle class.
RE:Rupee rise
by Dontharaju RaviChandra on Jul 25, 2007 09:59 AM Permalink
What about the lay offs that might occur in the IT industry? Wouldn't a common man be affected? The IT industry has a very big work force, with the major companies having more than 50k employees each. The common man would suffer in a situation like that. Premjis and Murthys have enough money to keep them and their children happy for ages! If Indian exports decrease then its the common man who would loose. Small scale industries which depend on exports would be affected badly. Just because owners of big companies are gonna frown, that does not mean the common man will have a laugh. Think rational. Growing rupee is definitely a good sign, but how long can we offer our own goods to ourselves? Gradual increase or decrease is acceptable, but a sudden change can lead to dangerous consequences...
RE:RE:Rupee rise
by shovon dasgupta on Jul 25, 2007 10:19 AM Permalink
Even in that case, it will have an impact on not more than 2 lakh people..but it might bring some smile to the rest if the govt thinks about small scale industries and importing goods..so if the rupee rise affect 0.2% of the indian population and brings smile to the rest 99.8% let there be rupee rise..the govt does not need to think about premjis and murthys..
RE:Rupee rise
by the unique on Jul 25, 2007 09:51 AM Permalink
As metal import becomes cheaper, cheap imports from countries like china n other counties will increase which will result in loss to small companies which are suppliers to automotive or domestic products.
RE:Rupee rise
by Raza Khan on Jul 25, 2007 10:05 AM Permalink
I fully agree with sweetguy. However, the author of this article seems to be too much caring about the fortunes of the Murthy's, Tata's & the Premji's !!! :)
RE:Rupee rise
by Praveen on Jul 25, 2007 10:02 AM Permalink
then Foreign mkts wont purchase our proucts cos of rise in rupee. they will hav to pay more dollar to buy indian product which will hit indian economy. It will lead to more supply than demand stage in indian mkt.It will hit indsutries like agro, textile etc. So rupee value shud be evenly poised.
