We have witnessed the glorious moment of India touching 20k index .now we are a “Trillion dollar economy” sounds good doesn’t it? Lets get a little analytical. We are now a part of a global economy that promises to attract lot of foreign investors. The way rupee is appreciating; the scenario is apparently
is rather uncongenial.
IMPORTERS:-A BOON
The rising rupee will help the government to curb inflation, as the input cost of
to make entry into the global market by acquiring companies like CORUS.
EXPORTERS:- A BANE
Textile industry has been the major contributor to the domestic economy as well as to the exporters,
When rupee value rises it adds a burden to the exporters for they are at the losing side.
Yet another hit is on the IT sector, which primarily depends on the market available for their services
abroad especially the us.
So where exactly are we going?
This is the question to be answered by the government!
2 comments:
hey any country will have to face these kind of situations in their transient period ( where a country is rapidly charging towards developed state)
solution may be
our country has to concentrate on other third world countries and to expand our market there!!
As you have written, rupee appreciation is no doubt a boon for importers but dire for exporters.
I m sure that the economists and the government would surely have looked at this and will certainly be thinking of a good time to devalue the rupee. Its happened twice in the past and this is the perfect time to do it again. Though FDIs and FIIs are of immense importance to a nation's economy, we want the nation's balance sheet to look clean, right?
And if we remember what China had done to its Yuan until recently, we certainly have lots to gain from such devaluation process.
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