Re: If India don't keep currency week then all FDI and BPO go bac
by Test User on May 19, 2012 07:41 AM
They are much better. I really hate it when my call gets redirected to India :( Even non-English speaking BPOs like Ukraine are better.
Once the FIIs decide to withdraw their investments in indian stock market, the value of rupee against US dollar will go on falling to a great extent. In addition, our indian stock market will loose all steam and will come down to historic low because lack of interest of investors in shares and poor and most weak economy of india. now action taken by finance minister to go for austarity measure is not suffice to save our poor economy, rather, it demands corruption free administration and severe punishment to the corrupt people.
In 1947 one dollar equal to One Indian rupee India's performance under UPA much worst because Inflation is very high than NDA(2-4 percent was the inflation) Corruption is higher .... Now there is scams of Lakhs of crores today Foreign Debt is 4 times higher than NDA it is at 450 B USD today where in the NDA times it was arround only 110 B USD and Stagnent all the 7 year during NDA rule that is why today Dollar reaches to Rs 54. moving towards Rs60 It means by FDI route people(polticians) can get access(aquire or loot) the more resources in India Be it Lands,Mines, or Products or Services...etc FDI means money which had been illegal sent to Mauritius and Return back as FDI (belongs to most poltical class) During this UPA 330 B USD (16 lakh crores) has bee taken as External Debt Where this money had spent no body knows.. Airport,Road,Power Generation,Education all Major development projects are being done by Public Private partnership now days... NO new PSUs have been opened in this years..
Hi..I am not really strong in economics and would really appreciate if someone could help with the following queries: 1) What exactly is meant by rupee 'gaining' and 'falling'? Against which currency is it benchmarked? And why are the experts worried about it falling, because here in the IT industry, the crowd is quite happy as it translates to higher revenue because of the higher exchange rate!! Confusing for me(and a lot of us) 2) How does the poor economic situation in Greece and a few other european countries affect Indian currency?? And for that matter, how does it affect the US dollar? I tried to read wiki and a few other websites to get some idea about gains,falls,depreciation etc, but ended up more confused. WOuld really really appreciate if someone can help me out, so that I am not lost next time we discuss this topic in our team lunches!
Re: Hi...can someone explain??
by jagan rao on May 18, 2012 02:13 PM
HI NIsha Countries like India have emerging economy, so a huge percentage of investment in India is from outside the country, especially from US but due to recession in US, big institutions are collapsing and many of them are on the verge of breakdown. They are suffering huge losses in their country. They have to maintain their balance sheets and look strong on all statements, so to recover losses in their country, they are pulling out their investments from India. Due to this pulling out of investment by these big companies from India or in other terms disinvestment, demand of dollar is raising up and rupee is depreciating.
There was a huge interest rate differential between India and US. Now RBI is reducing all kind of rates to increase money supply in market, so deposit rates will also move downwards. It will reduce the rate differential between two countries and affect the fixed investment in India in a negative manner.
Second reason - Collapse of International Trade
If you observe in terms of international trade, commodity prices are crashing at international level.
Importers are trying to accumulate dollars, as they have to pay in terms of dollars and at the end demand is increasing against the rupee. This has not happened yet due to lack of confidence in all kind of markets.
Exporters have a very few orders from outside countries, so there is no matter of converting dollar into rupee thereby decreasing demand for rupee.
It is highly regrettable that the bundles of currency notes having rubber stamped by some bank shown in the phots here. They are spoiling them inspite of directive from RBI. No one cares for RBI directive as it has no punishing power for such acts by Banks!
these days rediff has a tendency to create unnecessary issues and the readers fall for it criticizing everything under the sun...
Don't know what's the issue is if Rupee has devalued by 202%? Is it really bad? or is it good for the economy, in the sense it will boost exports?
People in the message boards are talking about inflation etc? How is it related to ruppee being devalued? With devaluation only imports including fuel oils become expensive.
As Vinod Gupta, editor of outlook, said few days back - "These kinds of articles will enable the govt to set up regulatory board for media"
While the rest of Indians work hard to build things up in this country, the Congress works hard to tear them down. It was Narasimha Rao who started the reforms, and it was BJP who continued them, thus bringing in foreign investment capital. It's Congress which has squandered the sacrifices made by others, and the predictable result is that the economy is sliding back down under their selfish tenure.
