As Rs breaches 64 to a $ mark, and thereby stumbling to 20 month low, people have started asking question about where our economy is really heading.
However, I do feel that this is a good opportunity for our exporters to profit more, this is a good opportunity for our NRI friends to contribute more, it is a good opportunity for us to control our import.
Many countries (for example Japan and China) frequently resort to reduce value of their currency to boost export. India had done that in the early 1990s. So rupee gaining or weakening against a foreign currency does not have much relevance as long as that is stable and as long as that starts affecting growth and purchasing power.
It is of course entirely a different matter that our current PM was of the view, when he was the aspiring PM, that weakening rupee means a weakening economy. It will be interesting to hear his views as Rs has fallen from a strong 58 a $ when he took oath to 64 a $ a year after he took office.
However, I do feel that this is a good opportunity for our exporters to profit more, this is a good opportunity for our NRI friends to contribute more, it is a good opportunity for us to control our import.
Many countries (for example Japan and China) frequently resort to reduce value of their currency to boost export. India had done that in the early 1990s. So rupee gaining or weakening against a foreign currency does not have much relevance as long as that is stable and as long as that starts affecting growth and purchasing power.
It is of course entirely a different matter that our current PM was of the view, when he was the aspiring PM, that weakening rupee means a weakening economy. It will be interesting to hear his views as Rs has fallen from a strong 58 a $ when he took oath to 64 a $ a year after he took office.
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