Finance, Forex and Investments

if indian currency is getting stronger what is the loss?

does'nt it signifies india's progress. indian rupee can be one day same as us$.

Public Comments

1. it makes indian products dearer to US market. A Rs. 300/-shirt was earlier $6. Now it is $7. Will the Uncle Sams buy that, especially when the Chinese are breathing on our neck??
2. Good Dream..... LOL. Just checked the equation. It is almost 1:45 now. To equate you Indians need to produce more in house. The pseudo boom is basically because of the dump in foreign currency by many MNCs and because of the Software boom. Both are temporary and are reversible. The best way to improve money value is to improve upon GDP or say to raise Production which are Tangible. As of now India is striving on services only for its economical growth. Production contributes only 15 to 16% and the rest is from Services. This has to reverse. That means, India should have their own technologies, etc. Cool, any nation when faces currency fluctuations, it affects its trade. When the currency gets stronger, you will get less Indian currency in the International trade, since most of the trades done in India are on other national's currencies. That means, when you export, you get less on Indian currency value.
3. If dollar depreciates against the rupee, then all the export houses in India which comprise of the entire IT and ITES industry will have a problem in procuring new business as well as maintaining the current business accounts. Hence the foreign exchange earning for India ( which comes in USD ) can reduce to a large extent as well as there can be huge job losses in IT and ITES sector as well as all EOUs. With reduced foreign exchange, the oil subsidy can decline and the petrol price will go up. When petrol price goes up, everything becomes expensive. Moreover, the huge investments in India are made because of huge difference between USD and INR. If this gap reduces further then the investments would also reduce. So with dollar depreciating against rupee in a short time will have disadvantages rather than advantages in the present moment of time.