3)The problem lies in quoting prices in US dollar (since rupee was on downslide against US dollar for the last 50 years, continuously). All Indian exporters wanted to make extra-ordinary profits from rupee downslide.
4) On Purchasing power parity basis, rupee is still under valued by 60% compared to US currency. That means, it is still cheaper to buy Indian goods for most of the world.
Bottomline: Exporters need to export more to Non- US market, OR quote prices in currency other than US $. Either would take care of US $ downslide risk, which has not ended yet.
RE:Lowering US dollar continued.. Part 2/2
by Ajay on Jul 26, 2007 09:34 PM Permalink
Qualift your statement by giving the example.
Housing (much inferior quality) is more expensive in India then US/Canada/Australia
Renting is cheaper in india.
Agricultrual land is more expensive in India than US/Canada/Australia
Helathcare is free in Australia/Canada/UK.
Following Fruits are more expensive in India - example Apple, oranges, grapes, almonds etc etc
vegetables are slightly cheaper in india.
Milk is Cheaper in india.
Grain - wheat, is cheaper in price.
Fuel is more expensive in India.
Telephones are slightly cheaper in India
Internet connection is more expensive in India
Kids education is expensive compared to public schools and cheaper compared to private schools. majority send kids to public schools anyways.
Comparative cars are expensive in India.
Liquor is expensive in India.
Branded clothing is same price. Non branded is cheaper in India.
Maids and servants are cheaper in India.
Computers are same in price.
Meat is slightly cheaper in india.
My personal experience cost of living in India is about 60% of cost of living in US/Canada/Australia if you are renting and 100% if you have financed a property.
