"Appreciation of the rupee has led to loss of comparative advantage for Indian exporters and also has put pressure on margins through cheaper exports," the Confederation of Indian Industry (CII) said in a statement.
According to the CII, in the past year, the Chinese yuan had gained 3.6 percent and Pakistan rupee rose 0.3 percent, while the Sri Lankan rupee fell 4.6 percent.
Thus the Depreciation of Doller hurts Exports from India and may be other neighboring countries

Replying to [Smir]:

Thanks Mr. Samir for your appreciation.

Replying to [vshanker]:
Hey Shanker, I had a thought you might not like......... If India pays out all the IMF and WB loans....... you do realise that that means all of us who DO fund the IMF and WB are going to expect you guys to join OUR side of the funding and cough up a few billion over the next decade to help fund loans to poorer countries!

Don't forget that you guys will have to take on that part of being a developed rather than developing country!

Replying to [Foow]:

Why not. We all Indians would be too happy if India joins the team of US and other developed countries as a developed country to help poor countries provided India does not exploit the situation of those developing countries in the name of help.

Replying to [vshanker]:Yes Mr. Shankar you are absolutely right.

Peter, You will accept the fact that India is the most preferable sourcing hub for US & European countries & the day is not far enough when India will be amongst developed countries.

Replying to [vshanker]: I think it will be a good thing.... Just wanted to let you know shanker....The horse trading in the IMF and WB is outrageous and politics is most definately involved.... Unfortunately if you look at the reports issued by the IMF and WB HUGE amounts of the money giving to poor/ developing countries ends up being stolen by powerful people in those countris and never gets to the people it is menat to help..

Reports the other day that of the 500 million in emergency loans to Bangladesh (I think) for monsoon releif over the last 5 years over 100 miilion is "missing" and thought stolen by provincial politicians.. *sigh*

Replying to [Foow]:

True to certain extent. This is what politics is all about.

But I feel there is another side of this situation also that you have referred above. I am of the opinion that there has always been a tacit approval of lending institutions or of funding countries (developed countries, of course) in the encouragement of corrupt politicians in underdeveloped or developing countries which keeps them going interrupted. It is simply because at a later stage, these corrupt politicians and administrators become puppets in their hands and start making their countries' policies (internal & external both) exactly as per the wishes of these lending institutions or funding countries (i.e.developed countries). Otherwise, we all know that even a small local bank stops lending any person or business entity, the moment they realize that the loans given are being misutilized by the beneficiary. Whereas, we all see that IMF or WB keeps on giving loans after loans in spite of knowing the fact that money is being misutilized or stolen, as you said, by the country's politicians and administrators. That only proves that there is something wrong somewhere!!! This resembles the situation where a greedy landlord keeps giving loans to the poor farmers, against hypothecation of their valuable lands, fully knowing that the farmers would never be able to return his loan either because of his inability to utilze loans efficiently in a productive way or utilizing loan amounts simply for consumption purposes. And by this the landlord would be in a position to take over (snatch legally) their valuable lands after the lapse of a specified time period. This is really sad. That is why I had mentioned above that ".....provided India does not exploit the situation of underdeveloped countries in the name of help."

Replying to [Anshu]: Depreciation of Dollar is making import activities healthy :)

Replying to [Smir] & [Anshu]: Appreciation in Indian rupee value is making it easy for Indian big industrialists to invest abroad and takeover leading overseas companies by making them more competitive internationally (at a lesser amount of Indian money for the same dollar amount). A few companies have already been taken over by Tata's and Birla's and a few more are in the pipline of being taken over by these Indian industrial giants very soon. Once the overseas company is taken over, a regular incoming of foreign remittance in the form of profits and dividends will make Indian foreign exchange position stronger. Till now only foreign MNCs, operating in India, were taking out their profits in dollar terms out of Indian economy.

Replying to [vshanker]:Yes Sir, I am convinced with your points.

Replying to [vshanker]:Is Tata or Birla belongs to the India Government or owned privately? If Tata is a private owned company, my understanding is the foreign currency she earns may be used for other investments out of India as she is really big and targeting the
international markets. Indeed, India needs many more of these big
enterprises to earn enough money to help the local Indians to improve the living as the huge population really enhancing heavy burdens for India. Weakening dollars should will give impact on the
big companies like Tata for it exports the motors in dollars while manufacuring in rupees cost. We do not want to see too much lower
dollars and keep losing the confidence of using it. Today, tourist sight seeing area in India are refusing to accept US dollars for the depriciations. If it goes on like this, who knows one day we will find another strong currency or a basket of assorted currencies replaced
dollars as the major for the worldwide business!