One dollar is 60 Pakistani rupees compared to 40 Indian Rupees. Any item exported from Pakistan will be much cheaper than India. Already Pakistani mangoes sell more than Indian mangoes.
Can India exports survive Pakistani competition?
Re: Can India exports survive Pakistani competition?
The increasing value of INR is making it difficult for indian exporters to compete, but even after this the Indian exports grew by 23% in April 2007 as compared to last year.
Re: Can India exports survive Pakistani competition?
US$ should be strong like it was till few months back :no: coz my payment comes from abroad nd i’ve already suffered loss of near about 45k INR in last 2 months. I was happy when it reached on its peak level at 46 INR 
Re: Can India exports survive Pakistani competition?
well i guess its good time to over take foreign companies then....
and import of foreign goods and machineries...
could tata have gone higher to buy corus if the dollar was this low last year ? ...
Re: Can India exports survive Pakistani competition?
India’s IT industry despairs over surging rupee
BANGALORE: India’s IT industry expressed serious concern Wednesday over the impact of the rupee’s surge on export-dependent software exporters, already struggling with high costs.
Any hope for the industry lies in the US economy performing better than expected and the US tweaking interest rates to prop up the dollar, said Kiran Karnik, president of the National Association of Software and Service Companies, or NASSCOM.
“We have had an eight or nine percent increase in the rupee in just the last three-to-four months,” Karnik, whose organisation represents the IT industry, told reporters in Bangalore.
“This is something about which the entire industry is greatly concerned about.”
The US accounts for two-thirds of Indian software sales, and any rise in the rupee trims profit margins of companies such as Tata Consultancy and Infosys Technologies that are at the vanguard of the 48 billion dollar industry.
NASSCOM has estimated India’s software exports at 31 billion dollars in the year ended March.
Net foreign-exchange earnings make up 51 percent of sales at Tata Consultancy, 56 percent at Infosys and 35 percent at Wipro.
IT companies, while billing in dollars, are not import-intensive, unlike jewellery makers who buy raw material such as gems and uncut diamonds from abroad to polish and fashion into ornaments.
“All our expenditure is in rupees so we take a huge hit,” said Karnik.
India’s IT companies are already reeling under wages that are rising an average 15 percent a year in the face of a shortage of skilled engineers, while competition is increasing from emerging rivals in countries such as China.
Wages typically account for half the costs of IT companies, but there are warnings that more rises will blunt India’s competitive edge.
“We have been so far able to manage them,” Karnik said. “But if wage costs increase and on top of that there is dollar depreciation, we are going to have a problem.”
The advance of the rupee to decade highs, making the currency one of the biggest gainers this year and propelling India to a trillion dollar economy, has not been foreeseen by either economists or exporters who bill in dollars.
The rise has been fuelled by inflows from investors eager to pump money into an economy that expanded a record 9.4 in the last financial year.
Foreign direct investment nearly tripled in the year to March to 16 billion dollars from 5.5 billion a year earlier.
“The rupee appreciation is sharp and here to stay,” investment bank Credit Suisse said in a report. “The impact is material for many and can no longer be ignored as cyclical.”
The report said it could appreciate “by a further one to two percent in the following months.”
The Reserve Bank of India (RBI) has eased off from selling rupees as it seeks to wrestle down inflation.
Letting the rupee rise has made imports less expensive, cushioning the impact of strong fuel prices for India, which relies heavily on imported oil priced in dollars.
The rupee has also risen too high, too fast and “there is bound to be a correction,” Karnik said.
Re: Can India exports survive Pakistani competition?
nope it cant 
…pk aam r mazedar…(i miss them sooo much 
)