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Originally posted by abu_siraj

India has great potential to develop its IT sector and no need to depend on US for any IT jobs. However IF INDIANS WANTS TO LIVE RESPECTFULLY WITH GOOD SALARY THEN first thing India should strengthen its currency value and bring at least close to US Dollar. It is possible but many Indian companies and rich people does not want to do becos they will loose their profit from foreign currency exchange.

If India can bring Indian Rupee close to US dolla r then How indians and Indian economy will benefit.

1.Indians will no need to travel abroad for earnings.
2.Indians will develop their business in home land and they can create lot of job opportunities.
3.Because of job opportunities and high income, citizens will not move for foreign immigration.
4.Indian government should fix minimum salary for laborer and it should be on hour basis. This will help to eradicate indian poverty.
5.Indian domestic product quality will improve and people will purchase more items for less money. Indian exports will grow.
6.Since Indians will not move to abroad, they will not be humuliated anymore in the foreign lands. (millions of indians humuliated in gulf every year)

WHY INDIA IS NOT STRENTHNING ITS CURRENCY BECOS RICH PEOPLE (INCL. POLICITIANS) ARE CONTROLLING THE GOVERNMENT AND THEY DO NOT WANT TO LOOSE THEIR FOREIGN CURRENCY DEPOSITED IN HUNDREDS OF SWISS BANK ACCOUNTS ILLEGALLY.

NOTE : WHEN THE INDIAN CURRENCY STRENGHTHEN JUST 10 PAISE SOME SIX MONTHS AGO, THE INFOSYS CHAIRMAN SHOCKED AND SPOKEN TO GOVT. THAT THE COMPANY WILL LOOSE MANY CRORES AND HE WANTED TO LOWER AND LOWER AND LOWER THE CURRENCY TO HIS OWN BENEFIT.

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Appreciating or depreciating value of Indian Rupee is not completely in the hands of Indian government. It depends on a lot of factors.

Indian government can only influence the exchange to some extent by increasing/reducing amount of rupees from circulation or buying/selling foreign currencies it holds.

Beyond that it is left to the mercy of market forces.

yes, Exporters like Narayana Murthy would love Indian Rupee to go to rock bottom in Value. But that is the case with exporters in any country.

Who is going to buy Indian products/services if Indian rupee appreciates in value and is equal to the dollar?

Having a stronger currency is no longer a source national pride in today's world.

Many countries including Japan and China have been trying to depress their currency value to increase exports and keep their citizens from losing jobs