It does not visualise how will the change in exports and imports takes place. The appreciation of rupee may hit exports provided the consumption around the globe is stagnant which will not as the consumption also increases as many societies are becoming more materialistic. This logic may not work since we donot know how will our agri and industrial products are related in world as other countries are also competitors
RE:dollar
by Ajay on Jun 20, 2007 07:17 AM Permalink
Well even of the consumption around the globe is staganent, production happens in the most cost effective place. With the barriers removed production moves to most cost effective place - please not most cost effective might not be the cheapest place, it might be but not necessarily.
We have a huge population and franly i do not have much stats about Indian Agri business. If a tonne of wheat grown in Australia costs me less than Tonne of wheat grown in Punjab as a trader i will buy Aussie wheat.
