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Will India rupee's pressure affects India's Import & Export business? -Mar 04

The Indian rupee came under pressure on Friday on worries about a slowdown in capital inflows, after the government proposed an increase in short-term capital gains tax and sent stock prices lower.   what's more, oil is India's largest import, and higher crude prices usually mean downward pressure on the rupee as a larger import bill would widen the trade deficit.   What's you idea to release India rupee' pressure? How will it affects India's Import & Export business?   Source: Indian rupee slips on equity worries, oil payments

Posted on 2013-02-15 00:58:49

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Please don't sprinkle salt over cut wounds....[em7]Indian economy is robust....and as regard the 'Rupee'....the government has in its sleeve ways and means to tackle and take care of any situation.The important issue that may concerns all of that cheap imports form China..will soon come to a halt.Worries for China India is now the largest trading partner of China displacing US.It means...China is 'NOW' more dependent on India.

2013-02-15 00:58:49

Replying to [Admin]:Obviously, It is under pressure, But I believe that Govt. rather Mr. Chidambaram is taking timely step to correct the same. Strengthening Rupee was the biggest task of RBI in this Fiscal. How ever to improve the export various provisions are kept in the new budget.I think the pressure is currently on world wide economy and no doubt India is the part of world.However, I do believe that situation may persist for this year I mean 2008.Lets hope for the Best.

2013-02-15 00:58:49

Replying to [Admin]the govt should try to give more incentives to the exporter in form of the policies like depb ,deec

2013-02-15 00:58:49

Replying to [Admin]:absolutely it affects India's Import & Export business because the established overseas buyer don't want to pay more while the indian currency is becoming stronger than $.

2013-02-15 00:58:49

In short term, Yes. In long term, No. Recently, Indian Rupee and Chinese Yuan both have seen value appreciation. The appreciation in Yuan is deliberate and has been gradually allowed to happen to shut up those western critics who believed the pegging of Yuan to the Dollar gave Chinese exporters an unfair advantage. On the other hand, the appreciation of Indian Rupee has been primarily been on the back of increased FDIs into the country's sizzling (until recently) stock markets. Now that the sizzle has fzzled (at least in short term), I see Rupee devaluation ahead. GNN India

2013-02-15 00:58:49