Though we have made significant progress in last decade, to compare current India to 80's Japan does not seem realistic. Japanese auto makers had significantly better product in terms of quality, fuel economy and electronics. They used that advantage to survive an unfriendly situation. Indian software companies are still primarily competing on cost advantage. While we are all hopeful that in the near future, India will be able to compete on other parameters, not giving them the exchange rate edge now will not help the current growth. I certainly would encourage our central bank to be watchful of the exchange rate with our key target markets and act in a proactive and responsible manner, instead of just telling Indian companies to innovate and expect BPO and IT firms to just do that.
