Garment Industry in India feels Pinched by Indian Rupee

[SindSagar]

***Not so rosie for the low paid garment workers of India to loose jobs to Pakistan, Bangladessh and Sri Lanka!..:(

http://www.businessweek.com/magazine/content/08_02/b4066057095906.htm?campaign_id=yhoo

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The rest of the world is transfixed by the fast rise of India’s info tech industry. But the tech companies spawned in Bangalore employ only 2 million. The textile and apparel industry employs 88 million, and its strength is key to India’s economy. Right now those companies are being squeezed hard by the rupee, which appreciated 11% against the dollar in 2007. That has driven up the cost of Indian apparel—and driven U.S. and European retailers to switch orders to Pakistan, Bangladesh, and Sri Lanka, whose currencies are cheaper. “If we don’t get the right price in India, we will move elsewhere,” says Rajan Naik, a buyer for J.C. Penney

[kallu]

Re: Garment Industry in India feels Pinched by Indian Rupee

Actually indian govt has removed the cess on garment exports and it is providing subsidies for garment manufactures to ward of the effects caused due to appreciation of indian rupee. Indian officials are doing a great job by keeping the rupee appreciated and keeping inflation low. Oil touching 100$ a barrel hasn’t effect inflation in india which keeps the essentials available for the masses.
link from PIB(govt website)
http://pib.nic.in/release/release.asp?relid=34234

[StirCrasy]

Re: Garment Industry in India feels Pinched by Indian Rupee

Sindsagar: the Rupee appreciated for a reason. What is it?

[SindSagar]

Re: Garment Industry in India feels Pinched by Indian Rupee

@StirCrasy

Sindsagar: the Rupee appreciated for a reason. What is it?

You seem to have the answer…:desimunda:

Go ahead make my DAY!..

[ssingh]

Re: Garment Industry in India feels Pinched by Indian Rupee

@StirCrasy

:smack: Sindsagar: the Rupee appreciated for a reason. What is it?

Reasons of rupee appreciation against dollar? - Answers

Earlier i had thought higher exports would lead to weaker rupee. Though it is true, i could be opposite depending upon circumstances. Now i am getting some idea as to why.

[lakkis25]

Re: Garment Industry in India feels Pinched by Indian Rupee

@SindSagar

Not so rosie for the low paid garment workers of India to loose jobs to Pakistan, Bangladessh and Sri Lanka!..:(

http://www.businessweek.com/magazine/content/08_02/b4066057095906.htm?campaign_id=yhoo

The rest of the world is transfixed by the fast rise of India’s info tech industry. But the tech companies spawned in Bangalore employ only 2 million. The textile and apparel industry employs 88 million, and its strength is key to India’s economy. Right now those companies are being squeezed hard by the rupee, which appreciated 11% against the dollar in 2007. That has driven up the cost of Indian apparel—and driven U.S. and European retailers to switch orders to Pakistan, Bangladesh, and Sri Lanka, whose currencies are cheaper. “If we don’t get the right price in India, we will move elsewhere,” says Rajan Naik, a buyer for J.C. Penney

even i’m also worried with the strong rupee, when i transfer money to india i’m getting less amount, they are predicting to go upto 25

[kaka_in_usa]

Re: Garment Industry in India feels Pinched by Indian Rupee

^ ^ Same here.. when i came to US i paid 50 Rs for a $. i paid all my tution like that and now when its time to send money home... i am doomed :(

[denada]

Re: Garment Industry in India feels Pinched by Indian Rupee

Pakistani rupee is now 62.64 for a dollar. India is around 39.3, Pakistan will definitely have an advantage on exports as Pakistani goods will be much cheaper. Would it affect outsourcing too?

[iPundit]

Re: Garment Industry in India feels Pinched by Indian Rupee

Before starting its operation in chandigarh Dell International's first and only question was "How far is pakistani border from here?". Good corporates, primary concern is to operate far away from any military disturb or political unstable state (pakistan politically unstable...bangladesh unstable and sri lanka unstable too). Pricing is the secondary factor and India still satisfying primary concern of corporates therefore will enjoy outsourced work....

falling pakistani rupee is not a good thing

[JayR]

Re: Garment Industry in India feels Pinched by Indian Rupee

Pakistani rupee and Mexican peso are the only two currencies that I know of that are falling against the dollor. All else are going up.