# Stronger Rupee = Stronger India



## rahul.ims (Aug 7, 2007)

​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… *mail.google.com/mail/?attid=0.1&disp=emb&view=att&th=1143ede7fc245208


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## sachin_kothari (Aug 7, 2007)

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


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## ~Lil JinX~ (Aug 7, 2007)

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 ^^


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## esumitkumar (Aug 7, 2007)

This article came as a forward to me yesterday    

Dreaming when we will have 1 Rs = 40 $


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## gxsaurav (Aug 7, 2007)

rahul.ims said:
			
		

> 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?
		
Click to expand...

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


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## ~Lil JinX~ (Aug 7, 2007)

> Push...boy, Push,



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


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## Edburg (Aug 7, 2007)

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....


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## rahul.ims (Aug 7, 2007)

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..


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## gxsaurav (Aug 7, 2007)

rahul.ims said:
			
		

> 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?


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## sandeepk (Aug 7, 2007)

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


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## freshseasons (Aug 8, 2007)

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.


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## sumeet singh (Aug 8, 2007)

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...


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## cynosure (Aug 8, 2007)

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


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## amol48 (Aug 8, 2007)

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..!!


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## rajesh_nk22 (Aug 8, 2007)

Good one,


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## rahul.ims (Aug 8, 2007)

cynosure said:
			
		

> 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.
> ...


 

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....


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## amol48 (Aug 8, 2007)

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


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## rahul.ims (Aug 8, 2007)

amol48 said:
			
		

> 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...


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## deepakg (Aug 9, 2007)

*i144.photobucket.com/albums/r168/happyandy/goodpost.gif


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## Aberforth (Aug 9, 2007)

gx_saurav said:
			
		

> 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.


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## shashank4u (Aug 9, 2007)

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.


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## ~Lil JinX~ (Aug 9, 2007)

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 ) 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.


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## mavihs (Aug 9, 2007)

thats so true!


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## wizrulz (Aug 9, 2007)

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.....


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## cynosure (Aug 9, 2007)

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


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## ~Lil JinX~ (Aug 9, 2007)

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.


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## rahul.ims (Aug 9, 2007)

~Lil JinX~ said:
			
		

> 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...


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## mavihs (Aug 9, 2007)

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.


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## indiana (Aug 9, 2007)

The original article is at *hitxp.wordpress.com/2007/07/20/stronger-rupee-stronger-india/


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## a_k_s_h_a_y (Aug 9, 2007)

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 ??


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## praka123 (Aug 9, 2007)

as long as AED is going strong,small time labors are happy(meant Gulf)


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## rahul.ims (Aug 9, 2007)

ƒire$eeker said:
			
		

> 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.


 
i agree   



			
				indiana said:
			
		

> The original article is at *hitxp.wordpress.com/2007/07/20/stronger-rupee-stronger-india/


 
gr8 job...


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## cynosure (Aug 9, 2007)

~Lil JinX~ said:
			
		

> 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.



Agri is the main occupation of rural people. Your development moves to villages, there wont be much fields left for cultivation. What do you think we are gonna eat.

@rahul.ims: 1-2 offtopics are no threat man. This is bandwidth wastage section.


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## rahul.ims (Aug 10, 2007)

cynosure said:
			
		

> Agri is the main occupation of rural people. Your development moves to villages, there wont be much fields left for cultivation. What do you think we are gonna eat.
> 
> @rahul.ims: 1-2 offtopics are no threat man. This is bandwidth wastage section.


 

sure man...


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## ~Lil JinX~ (Aug 10, 2007)

cynosure said:
			
		

> Agri is the main occupation of rural people. Your development moves to villages, there wont be much fields left for cultivation. What do you think we are gonna eat.



Aah, you think that "development" means pollution and cars only? Nope! It means better irrigation facilities, electricity, communication, education, better housing...

Many of those things will just help increase the overall productivity. So, your really improving everything in the end. Your food production included~

>_<...*LAST off topic post. Really*


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## cynosure (Aug 10, 2007)

A country is not called as developed until most of its income comes from tertiary activities (Retail, medicines and God knows what). So if youre dependent on agri for a major chunk of your income then your country wont be called as developed. This is what I read in my NCERT textbooks but since these books call Bhagat Singh a terrorist, I doubt the author's concept. And these things add to cars and pollution anyhow.


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## mavihs (Aug 10, 2007)

cynosure said:
			
		

> This is what I read in my NCERT textbooks but since these books call Bhagat Singh a terrorist, I doubt the author's concept.



wow! what how dare they say that. r they crazy.


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## cynosure (Aug 11, 2007)

^^ There was this controversy. It came in newspapers. Children of 6-7th class were being taught that BS/Sukhdev are terrorists.
Now its changed.


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## mavihs (Aug 11, 2007)

good thing.


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## The_Devil_Himself (Aug 11, 2007)

The main point is Making our country at par with other developed countries.I would prefer it to be like European countries like Switzerland,Sweden,etc than US.US is a sh!t country.No future for this country run by  peoples with sub average brains(Bush has an IQ of 91!!).

Look at any developed country(including US) they are almost self sustained for their basic needs.This is where we are making mistakes we think development in tertiary sectors is key to rapid development.It must go hand in hand with our primary sectors like agriculture.This is the base guys.

As far as Rising Rupee is concerned it is happening at very high rates it should be a slow BUT steady process.And RBI is not a stupid Indian govt. institution it hires the best of the brains.And don't ever think you will still be earning what you are earning right now if rupee ever comes at par with dollar.

Just look at European countries they are happy,self sustained,they make less kids,And they give free broadband services(lol) seriously they define a perfectly happy small country.

As far as comparison to China is concerned there is nothing to compare.India has SKILLED English understanding workforce unlike china where they have huge uneducated workforce and very less skilled peoples and they too are not familiar with english.So their growth surge is temporarily and they definitely can't sustain it for more than a decade or two at most(my guess).

The IT companies will have to change to survive in INDIA that much is clear.And they better start nowlike there is no tomorrow.More R&D work than just insourcing dumb jobs. 

The bottomline is:
1.)Stop worrying about US and China.
2.)Let our dumb government concentrate on primary sectors and small to medium scale industries.They are the base.
3.)let rupee gain strength but slowly so that export and IT companies gets the time to change and adapt accordingly or die out.
4.)Invest more on Education and R&D in our high class educational infrastructure.


DON'T RUSH DEVELOPMENT.LET IT BE SLOW AND STEADY.REMEMBER ROME WAS NOT BUILT IN A DAY.


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## cynosure (Aug 11, 2007)

^ China knows that they lack in english so they are setting up more and more schools and colleges where english is the main teaching language. Here the governement is going gaga over quotas. They are adding "the whole indian power supply" to their power supply every year (Although this has resulted in great amount of pollution which has rendered many of their agri lands and rivers as useless).

And AFA the agri of the country is concerned, we should not always depend on it. It gives food, that right but if we dont focus on Secondary industries, then we wont be having GOOD cars, rigs, and life. Primary focus only on agri will keep the prices of food grains low but will also effect the consumer industries. 

There has to be a balance. Like US depends on other countries on food products but they supply electronics/arms to other nation. In EU, there are several nations which have surplus of milk(like holland) and some are good in agri (I dont know which ones), some are good with sea-food(Like UK) and some are good in electronics items. So EU is more balanced. But there seems to be a problem in France as quoted in this months Readers Digest.

I need India to be like EU. It aint possible though


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## The_Devil_Himself (Aug 11, 2007)

China is a communist country and NO COMMUNIST COUNTRY CAN LAST FOR MORE THAN A FEW DECADES.Power to the people not to the government.

I agree fully that Indian government is the dumbest and the main deterrent to our nation's success.I hate it so much.If our govt. wants "equal oppurtunities to all" the stop the fu****g caste based reservation system.
Our govt. too is just using the same old english tactic"DIVIDE AND RULE".

But the stress should always be in primary industries.This is a must.You want cheap mercs and porches but it wont help in our development much as most Indians can't afford even a meal a day.Development for all not just for the rich and elite ones.


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## minniawochat (Aug 11, 2007)

sumeet singh said:
			
		

> Hey ppl,
> 
> would like to contradict here...
> 
> ...



Hi

  But is good for it hardware 

  now lattops are in 20 to 25000

  and computer prices are going down

  if $1 = Rs 1 then we can can have computer in rs 400 or 800

  we all can purchase windows 

  no piracy 

  we can all fly thru airlines

  only loosers want rupee go up.

  se what infosys say : We dont worry.

thanks


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## cynosure (Aug 11, 2007)

^^ They dont have to worry. Its the employees which have to worry. Dollar dips, Infy increases the working hours of its employees. 
If you are working in some industry which doesnot depend on dollars then at least one can think of a regular 9to5 job.


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## The_Devil_Himself (Aug 12, 2007)

minniawochat said:
			
		

> Hi
> 
> But is good for it hardware
> 
> ...



Look man you are talking like an utter moron and this pisses me off.

If ever 1 Rupee=1 dollar then you wont be earning the same what you are earning now.The prices of commodities will rise accordingly and sure enough you wont get a mercedes for the price of a 800.If this was the case then every american should be having a lamborghini but they don't.Is it tough for you to understand?

I agree that rupee should be stronger than what it is now but it should be a slow process.IF infosys(I mean the whole IT+Export industry) donot make money than they face losses and slowly will die out if it happens to be too quick.Then where do you think we are going to get foreign money into our country???Tourism or NRIs?

So Don't be an Idiot and use your brains.

Lemme tell you something very straight No matter what you think about our country It cannot compete with US and other developed countries as of now.We will have to wait for a couple of decades to take over the world.But it is inevitable and be sure to be at the right place at the right time.


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## Drizzling Blur (Aug 24, 2007)

Stronger Rupee ? Stronger India ?

Well, lets talk about Software Exports also shall we........ Rupee appreciation and depreciation is a huge deal. To conclude that India needs a specific type of economy is tuff, the scenario at the moment is good, hopefully it will continue this way.


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## mayanks_098 (Aug 24, 2007)

i agree.
a s/w personnel,or an exporter on the never want this.but we should stand out from our personal needs and think for the country as a whole.

and rupee appreciating to 40RS/$.... well we might get to see this in the nest 2-4 years or so(after chandrayaan and delhi games'10)


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## entrana (Sep 6, 2007)

maybe after a decade we could get a stronger rupee, because i think last decade rupee was around 50-1$


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## kirangp (Sep 6, 2007)

I will tell you all something...When I came to Australia I was shocked to see that many things here had a "Made in china" label attached to them... The labour cost is so much in Australia that  the local industries cant compete with Chinese industries...It is a necessity for the Australians to import many things from China...people think twice if the anything has to be repaired...sometimes it is cheaper to buy a new one instead of paying  for repairing it.... I feel thats how even India is trying to compete using its low labour cost in IT industry but even India cant compete with Chinese labour in hardware or any other industry....


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## als2 (Sep 22, 2007)

its the other way around Weak Rupees - Less Inflation - Strong India


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## mavihs (Sep 23, 2007)

Rupee all time strong in a decade. 1$ = 39 Rupees


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