I am sure the finance minister knows whats going on and the RBI too. There has to be a reason for not doing anything about the rupee strength. There is a misconception among people that India is getting better with rupee getting stronger and dollar getting weaker. But looks like its hurting Indian business in a negative way than positive. India GDP growth is expected to be at around 8 to 9% in spite of rupee's new value. Keeping rupee at a lower value brings more investment to India and more business also. Look at China, thats what they have been doing. Rise in rupee and fall in dollar helps American business's rather than Indian businesses. I was in Indian in June and I did very little shopping due to high prices. I spent all that money in US which was much cheaper. The clothes, electronics are way cheaper in US with good quality than here. A nice shirt in Bangalore costs Rs. 2000 = $50 and a better shirt in US costs only $25. So I am sure there must be a reason why the Finance Minister is mum about this issue, but I think something needs to be done.
RE:What's going on?
by Indian Muslim on Jul 26, 2007 07:07 AM Permalink
100% correct, I was in India few days back and bought a half sleeve shirt for 2400 Rupees which is close to 50-60$ at whatever rate you apply. I can get a much better "QUALITY" shirt in US at this price even though it might be made in China the quality will be excellent.
What about the billion of dollar worth loan which Indian firms are paying back at a much lower rate to US??
Those who are crying foul should also disclose the margin at which they made profit.
Hard to understand why a profitability drop is beign spoken about at %'age how about the overall import as well and cost of mandatory goods.
RE:What's going on?
by satheesh kumar on Jul 26, 2007 07:01 AM Permalink
Americans are living way beyond their means by having cheaper imports !!. Try to find euro market or improve marketing locally. A rising rupee is beneficial for india in the long term.
RE:What's going on?
by chigurupati venkateswarlu on Jul 26, 2007 07:58 AM Permalink
Can you tell us few positive aspects because of raising rupee? And also just compare the negative aspects against positive aspects and let everybody know. If you cannot, I hope you know what you should
