Assume the situation the Rupee touches 42 a Dollar. No doubt our exporters will earn less. But mind our massive foreign exchange outflow due to oil imports will reduce significantly. Hence what according to you will be the net impact of this on our economy?
In addition when ruppe is stronger say at 40 per dollar foreing invesotrs who invested would continue with their investments unless there is some macro economic isssue. So investments from FIIS would remain in the country for certain time because withdrawals at this rate are not favorale for foreign investors.
If we reach a situation where dollar equals 30 rupees probably more people can afford education abroad, travel abroad, some well to do families can remit money to their sons/daughters abroad, which currently may not make sense. Also NRIs and people of foreign origin wi ...more