| A big debate is going among corporate financial honchos about the recent appreciation of Rupee against Dollar. Some say that our export revenues will get affected due to this rise and very difficult to manage with rising employee costs. Some may even face job cuts and revenue cuts. Many of our IT & Textile companies have more than 50% of revenues in Dollars. Both the sectors are also pioneer in their respective segments. So, the cost efficiency factor plays the rule. So, We have to be prove our competitiveness in order to hold on exisisting markets and expand to new markets. Export oriented Indian corporates had faced this Rupee appreciation problem for the first time after 1991 economic liberalisation. So, this hiccup is a lesson for the future. For more news on the above http://knowledge.wharton.upenn.edu/india/article.cfm;jsessionid=a83053612e7431751f13?articleid=4218 |
Monday, September 10, 2007
Rupee - Dollar appreciation - Good or Bad in long run !
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5 comments:
i agree with you. We didn't built export competitiveness to face difficult situations.
Excellant view. Our technological competance is very low compared to other competitive factors.
Good analysis.
India is moving up!
The mainline IT Cos. won't be affected by Re appreciation. They have hedging tools in their belly to offset these losses.
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