What we dont realize in the wake of currency strengthening is dollar is getting weaker, rupee is not getting stronger. Also, Indian strength is cheap labor. We do believe we are the best in IT but thats not true. We do good copy work. We dont have innovation to support our claims. If Rupee were to get stronger, jobs will be outsourced to countries like poland, romania and mexico. Did you know that even TCS has opened a branch in mexico with 300 people working and plans to hire upto 5000 people? So i dont think dollar going down is good for India. Also, most of the US debt is in dollars and other countries hold things are Bonds of US Treasury, now when dollar goes down their liabilities which is our asset will go down as well. I think it will hit the equilibrium again and if it doesnt happen fast enough, I think manmohan singh's govt is smart enough to intervene and maintain a decent rate (I dont know what that would be but definitely no less than 38-40 rupess to a dollar
RE:Innovation
by on Jun 20, 2007 05:24 AM Permalink
I think of all the ppl out here..u md a good point..if the rupee becomes stronger or even it comes to 1:20 ratio..all the IT firms will bid adieu to us...furthermore we dont have too many home grown industries..so guess whose getting screwed...
