Lot of debate and articles going around about rupee rise and the consequences of the same. But it looks like one point is being missed consistently about the effect it has on those Indian who are working outside India. Apart from those settled in developed countries, there are thousands of Indian who are working in countries like Gulf and Africa and their families back home completely dependent on the money they send. Majority of them are earning in dollars and due to rupee rise, the conversion money they get is reduced and this is definitely affecting their life. No overseas business man is going to increase Indians pay just because dollar value in terms of rupees has reduced. No one really is mentioning a point about this problem. It is also possible that in long run high value of rupee may be beneficial for those who save money but for those who earn their daily bread from the money sent from abroad, it is a different matter all together at least for the time being.
RE:Rupee rise
by lalit gupta on Jul 30, 2007 12:27 PM Permalink
If you know it is 22 billion dollar a year remitted per year. It is big if you know what is total earnings in export and imports. In Gulf people dont spend money on luxories. They try to save as much as so later it can help them in India or to their relatives. If these guys come back then you loose 22Bn USD and no growth in Indian economy.
RE:Rupee rise
by Swarup on Jul 29, 2007 11:07 PM Permalink
This precisely is the reason for inflation in India, which the RBI is trying to curb. And you think this is missed?
