Stronger Rupee = Stronger India

[rahul.ims]

Let me ask a question first.
What type of economic strength is preferable to India?
A) A strong Indian economy fueled by its cheap labor due to a weaker rupee against dollar, where the Indians end up working in shifts, late nights, whole nights and what not… only doing low profile jobs which foreign companies want to offload to India, so that they can concentrate on high end works and become even better. For instance in IT field, providing BPO services, support and maintenance work for products…
OR
B) A strong Indian economy fueled by its strong innovations and products, no matter whether the rupee is strong or weak against dollar.. where Indians work only in regular office hours of 9 to 6, developing cutting edge technologies and solutions, selling our world class products both inside and outside India. For instance in IT field, imagine operating systems, compilers, databases etc all coming out of India..
I do not deny the fact that the IT boom in India came to a large extent because of (A). Well and good, we have had the benefits of our cost being cheap in western markets due to a weak rupee against dollar.. We have had our share because of this advantage in the past 2 decades..
But at the same time doesn’t it make sense to move towards (B), instead of crying foul against rupee becoming stronger against dollar?
What a pity! Indian IT companies are feeling bad because rupee is becoming stronger against dollar! Reason, their profits will go down when the value of rupee is stronger, as every single dollar that comes into their account now means lesser rupee than earlier..(if for instance earlier they used to get 47 rupees for every dollar that comes in, but today its about 40!)
But isn’t this a matter of celebration? Our rupee is gaining importance internationally and is becoming stronger again.. How many of us know that in 1947 when India got independence 1 Rupee was 1.2 US dollars?
These Indian IT companies instead of relying on a weaker rupee for their profit should now look at coming out with innovative products and technical solutions. What have these companies done in the arena of core system products? Why don’t we have any operating systems, compilers, database systems, development platforms etc coming out of India? Why don’t we develop tools like photoshop or flash? We have talent, but they all are working in American companies on these products.. Cannot our Indian IT companies setup at least small teams to develop such products?
Instead they are planning to make their employees work on saturdays too ! So that their profits can increase due to extra hours the employees put in.. As if India doesnt have any other option other than cheap labour, workaholic labor!! Are there no brains in India who can setup companies developing products and make money just by printing out more serial numbers and burning their product DVDs?
If Indian companies continue to depend on its weak currency, then how would Indian economy survive in a world where all currencies have equal value? Survival of the fittest.. Only greater innovation can help us in that case..
We need to have knowledge and technological advantage if India wants to become a superpower, not low cost based cheap labor advantage! Let the Chinese do it..
I hope that rupee becomes more and more stronger so that Indians are forced to use their brains and come up with innovative products and next generation technologies, than to provide low end services…
We need to create a situation where other countries line up to buy our F-16s, to buy our operating systems, to buy our mobile phones and I-pods, to buy our Boeing, to buy our Mercedes…
A stronger rupee means we can easily afford foreign trips!
“A stronger rupee means Indians can buy things anywhere in the world on par with developed economies! We dont have to spend crores of rupees then to buy a Boeing! We don’t have to pay tens of thousands of rupees for international air travels! A stronger rupee means greater international exposure! There wont be a difference between buying a Maruti and buying a Mercedes! One can go on a trip to the Grand Canyon just like the way one goes to Ladakh or Nepal ! How do you think american citizens are able to tour all over the world? Because they earn more? No. But because their currency USD is stronger.. and this is where a strong rupee will lead us to!…“
I am not saying providing low end services is wrong .. It gave us a very good start in the 90s. But that should definitely not be the bread and butter fueling our economic boom indefinitely in the future.. For the simple reason that it can’t continue to do so any longer.. other low cost destinations, cheaper than India are already coming up in the world… Let us move ahead… become more innovative.. the journey has just started… This is just the beginning of all the beginnings…

[sachin_kothari]

agree
even after independence we are still dependent of other countries for our income. this definetly needs to be changed.

[~Lil JinX~]

Excellent, you posted a topic about it! I had tried to say something of the sort in another thread, but this article summed it up pretty well ^^

[esumitkumar]

This article came as a forward to me yesterday

Dreaming when we will have 1 Rs = 40 $

[gxsaurav]

Originally Posted by rahul.ims

Let me ask a question first.
What type of economic strength is preferable to India?

B) A strong Indian economy fueled by its strong innovations and products, no matter whether the rupee is strong or weak against dollar.. where Indians work only in regular office hours of 9 to 6, developing cutting edge technologies and solutions, selling our world class products both inside and outside India. For instance in IT field, imagine operating systems, compilers, databases etc all coming out of India..

Why just technological things? India is way ahead of USA & China in agricultural production. Why not pay attention to farming? In the end, what do u care for more? an iPod or a gr8 UI based OS or a tasty cuisine?

You wanna develop india, then think from all the prespectives, just being a strong innovater in IT & service sector will do nothing.

These Indian IT companie.................. teams to develop such products?

Push...boy, Push, What we lack is a Push in the right direction.

[~Lil JinX~]

Push...boy, Push,

*snorts* Sorry, that cracked me up. Agree with what you said!

[Edburg]

Even when 1 rupee = $1,i just cant imagine the things i could buy.... like a 8800GTX for Rs.600 ,Q6600 for Rs.266....hell for about Rs.5000 i can build a system that is more powerful than Alienware........

May be a Lambhorgini for about 2 lakhs rupees........

Lets get on to this people......we need to reach this very soon before i get old....

[rahul.ims]

hey very true we jus can't ignore our contribution in agri...but the main thing that returns the major revenues is not agriculture but the IT and the other techies....it not about liking the iPod ot tasty cuisine but giving our nation a space in the world..

[gxsaurav]

Originally Posted by rahul.ims

hey very true we jus can't ignore our contribution in agri...but the main thing that returns the major revenues is not agriculture but the IT and the other techies....it not about liking the iPod ot tasty cuisine but giving our nation a space in the world..

A country is as strong as the economy is.

Economy cannot be made strong without agricultural progress.

Don't think by agrcultural production u can't make lots of money. Do u know the margin of Wheet farmers?

[sandeepk]

Just got this today in a email from friend. I completely agree with this!!!

[freshseasons]

I have been Crying Horse since the day (Reserve Bank of India )RBI is protecting Dollar.
Every time the Rupee gets strong RBI pours in and buys the Dollar Via Public Banks.They do it to protect the Exporters from falling Dollar.
Oh hell with them and the RBI Rules.
A Stronger Rupees increases so much a buying power for this country.
Man this Govt ..i hate its role here ..!
Look at China . Even though USA warned China Last week on the Increasing Yuan still they didint pay much heed to it.
When will India protect its Self Interest.

[sumeet singh]

Hey ppl,

would like to contradict here...

Do u realise how much loss is India incurring as the value of rupee has gone up...

losses in IT and Bpo sectors
loss in Exports..

The economic growth depends maximum on the Export market and ofcourse the IT industry...

[cynosure]

This is the main idea of the article which I dont think you got my man!
The author is asking till when is India going to depend on the exports and BPO to get a decent income? Its high time that India starts innovating new technologies so that we can have our own software firms doing the business and we would not have to depend on the "branches" of other tech companies.

Do you know that a huge chunk (More than 50%) of the total income that M$ India makes goes to the US and is added to the national income of the US? Its our money, its their income. You like that? I dont.

And as freshseasons said, China is one hell of an economy. It just dont give a sh1t about USA. It has flooded the markets across the world with cheap and quality goods (Sorry about using cheap and quality in the same sentence ). Nowdays if someone carries a gift from US for his younger ones, its marked as "Made in China" . Hell yeah, we need that kinda economy.

But I think Indians (include those laws and our moron ministers )are working more for the profit of US than the profit of Indians

[amol48]

RBI does it to protect the Indian Companies and their business. These are not the BIG ones but medium and lower-medium scale industries which are 1000's in numbers and contribute to the economy equal to that of the Biggies... If RBI doesn't protect dollars, then people will start buying imported goods only as they will get it cheaper then in India just some people here said that Maruti and mercedes will cost same and someone said about buying 8800GTX for Rs.600 ,Q6600 for Rs.266 and blah blah..

Moreover exports will also have to face loss, as Dollar price will be less... Unlike China which you said their goods are way too cheaper and hence they still wont cost as much as other imported goods.. So they won't have to bear such huge losses as India would have to..

Why do you think RBI maintains price of dollar high which otherwise is just Rs.35-36. It is neither that fool to do so nor lacks in management..!!

[rajesh_nk22]

Good one,

[rahul.ims]

Originally Posted by cynosure

This is the main idea of the article which I dont think you got my man!
The author is asking till when is India going to depend on the exports and BPO to get a decent income? Its high time that India starts innovating new technologies so that we can have our own software firms doing the business and we would not have to depend on the "branches" of other tech companies.

Do you know that a huge chunk (More than 50%) of the total income that M$ India makes goes to the US and is added to the national income of the US? Its our money, its their income. You like that? I dont.

And as freshseasons said, China is one hell of an economy. It just dont give a sh1t about USA. It has flooded the markets across the world with cheap and quality goods (Sorry about using cheap and quality in the same sentence ). Nowdays if someone carries a gift from US for his younger ones, its marked as "Made in China" . Hell yeah, we need that kinda economy.

But I think Indians (include those laws and our moron ministers )are working more for the profit of US than the profit of Indians

hey lemme throw sum light on this "Made in China" tag.....US ppl are the real sh!t ppl...they have banned the goods being imported from china saying that they contains toxic contents and are really harmful...US ppl jus can't c ne1 growing so they impose such kindda laws that makes the contries poor and poor....

[amol48]

dude that's business.. I don't see anything wrong in that.. eka profit dusre ka loss and i guess no one will bear one's loss

[rahul.ims]

Originally Posted by amol48

RBI does it to protect the Indian Companies and their business. These are not the BIG ones but medium and lower-medium scale industries which are 1000's in numbers and contribute to the economy equal to that of the Biggies... If RBI doesn't protect dollars, then people will start buying imported goods only as they will get it cheaper then in India just some people here said that Maruti and mercedes will cost same and someone said about buying 8800GTX for Rs.600 ,Q6600 for Rs.266 and blah blah..

Moreover exports will also have to face loss, as Dollar price will be less... Unlike China which you said their goods are way too cheaper and hence they still wont cost as much as other imported goods.. So they won't have to bear such huge losses as India would have to..

Why do you think RBI maintains price of dollar high which otherwise is just Rs.35-36. It is neither that fool to do so nor lacks in management..!!

hey i agree that our nation will certainly face lot many problems once the rupee gains little more power....but that is very certain man....our economy needs to grow bro....then only we'ld b in the list of the developed namtions else we'll always remain as developing and will always starve for better jobs and better opportunities....this debate is for preparing ourself to beat the world...the world that is ridden by the US ppl.....we need to take some risk man....its just a matter of while . ... if the rise of rupee keep going then one day we'ld be offering jobs to US ppl... ....they will starve to cum dwn here and work in pune...blr...delhi and so on...ha ha ha LOL...

[deepakg]

[Aberforth]

Originally Posted by gx_saurav

Economy cannot be made strong without agricultural progress.

Don't think by agrcultural production u can't make lots of money. Do u know the margin of Wheet farmers?

The incomes of wheat farmers would not tell anything about agriculture's contribution to GDP, which for the resource applied is very low. We should concentrate on getting a smaller population involve in sustained agriculture while get the disguised un-employed in useful jobs rather than have 70% on agriculture which contributes a minuscule of GDP.

[shashank4u]

falling rupee is hitting freelancers and webmasters very badly ..as they get funds in USD and when conversion takes place they loose money ..and even more worse when paypal's conversion rate which is always below the current market rate...

Stonger rupee stronger INDIA i agree with that...
but for those who are working on web 2.0 from India ,they are loosing money in turn India is loosing something...even big companies like Infy are also suffering.

[~Lil JinX~]

I'm starting to wonder. Doesn't everyone want India to be a rich, developed country? Doesn't everyone keep aping the west because they think its cool? We're slowly getting there, we're slowly (actually, pretty quickly O.o) strengthening the economy and turning into a developed nation, and now people are complaining. Yes, there will be losses, but its for the overall good.

[mavihs]

thats so true!

[wizrulz]

Look at indias population.....

If Rupee = dollar , or IF and only IF soemd ay RUPEE > DOLLAR......

All NRI population back in india along with foreign wokers.....

Now where the hell there is place and employment for them in india.....

That time also INDIANS will have to move out....

So better its now....

Before improving economy improve indias infrastructure to cope with the BOOM.....else INDIA is GONA be A CROWDED COUNTRY with no place to move and no place to work.....

[cynosure]

^^ There is no place left in the country ( OK there wont be after a few years) for "better" infrastructure.

[~Lil JinX~]

Of course theres space. There IS plenty of space. Most of the population is just concentrated in the few cities and metropolitan regions. Go towards the rural areas, develop those places, and voila, more "space", as you'd call it.

The only reason we're having a problem with managing the population is firstly because of the lack of a decent education, and the lack of development in the faraway reaches of the country. As soon as the people stop getting concentrated in a few cities, the better.

[rahul.ims]

Originally Posted by ~Lil JinX~

Of course theres space. There IS plenty of space. Most of the population is just concentrated in the few cities and metropolitan regions. Go towards the rural areas, develop those places, and voila, more "space", as you'd call it.

The only reason we're having a problem with managing the population is firstly because of the lack of a decent education, and the lack of development in the faraway reaches of the country. As soon as the people stop getting concentrated in a few cities, the better.

hey i guess v r deviating from the discussion.......
v r here in this thread to discuss about the pros and cons of rupee growing...

[mavihs]

According to me they should build more complex to increase better space management & to decrease space & resources wastage. which is going to gr8ly benefit us.

The original article is at http://hitxp.wordpress.com/2007/07/2...tronger-india/

[a_k_s_h_a_y]

well as rupee grows the prices for everything in india should come down

like say if 1 RS = 1 $

then a ferrai and a maruti 800 will cost the same !!
but this is not possible.....the thing is that the price for maruti should come down !!
else if again 1 RS = 1 $ we will be paying 10 $ for 1kg of onions !!


now if rupee is growing Prices for everything should come down in Rupess !! get it ??