We have to think in a global perspective, that juz in terms of Indian Rupee and US Dollar. It not a issue concerning the IT Industry. For any products say Engineering, Textiles, Agricultural Products etc if we need to be competitive in the international market we should be able to supply them cheap.
Do not forget, Indian Economy grew with the huge capital inflows from the international community and the Private sector. Only when Indian products became competitive in the International market, we got the orders for our products. and it was the effect of a devalued rupee.
Now, if the Rupee rise to a great extent, we loose our price competativeness, we cant sell our Products in the international market. Remember, we are not the only ones with the Niche products with a cheaper price, there are lots of other countries offering the same or better quality products at cheaper price that us. So if Re. continue to gain, we loose our competitiveness in the international market.
But, Re rise is great considering our Imports, eg. OIL import. Also it looks cheaper to import finished products like Laptop. But also consider that these Big Cos (Cisco,IBM,Dell or any other ....) will turn to importing products from other cos to India, than producing it in India.
It could be lethal, to loose lots of Manufacturing & low end Jobs, considering the huge population of India
