How Beneficial Can Falling Rupee Be?
In India, The Look East Policy was first conceived during the Narasimha Rao government in early 1990’s. But the policy never materialized, and according to Bower, this is the time when India could make use of its cultural and heritage ties to make alive the Look East Policy. It would not only help India strengthen Rupee but will also make India a global economic power.
Indian firms have always tried to avoid businesses in Asian Markets due to low business margin. On the other hand, U.S. has invested 10 times more in Asean markets than in India. "What India and the US ought to do is to chalk out joint business strategies to carry out trade with countries like Myanmar or Bangladesh. That is when fruitful business ventures will take place, leading to trade gains on both sides," said Bower.
Some of the companies that are making profit of the falling rupee are Bajaj Auto, Maruti, Yamaha, and firms that have invested in home-ground or are net exporters. Hence, instead of dwelling in the negatives, Indian companies should wake up and make the most out of this situation.
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