I am an Indian, though living in US, and always wanted to become Indian Rupee Strong, very strong. But guys think this way, what if companies will pull out from India. Y'day I read one article on rediff that 2 companies already closing their businesss in India, laying off 1800 employees. I understand that strong rupee will increase the purchasing power of my brothers in India, but for that the inflow of dollars will reduce which will affect adversly I think.
I don wanna go Dollar to go strong but be it moderate that it attarcts the foreign investors in India. somewhere around 40 I guess. If at this rate rupee will get strongm, I afraid of the job cuts in India. Even when it is heard that US market will come down, it is important for India to have little higher rate as job cuts will affect US first of course,but then surely in India.
RE:Dollar Rupees ratio
by Desi on Oct 25, 2007 07:22 PM Permalink
You are right. Probably the better thing to do would be to shift these jobs from India to Sri Lanka or Bangladesh where there is still a significant difference between the dollar and their respective currencies.
The Upside to your argument is that the domestic purchase cost of imports, most imp, Oil, cost of which is rising, would be cheaper.
I comply that Dollar export oriented units would be hurt, but what about Euro/Yen/Pound/Canadian dollar / Brazilian Real based export.
Also, Strong Rupee would force the economy to domestically improve and be less export dependent economy, like US, where almost 75% of the economy is consumer based.
