A warm welcome to my precious blog readers!
(That was only to make you feel good for exactly 2 seconds, now come back to reality)
Today’s post is about the weakening dollar & its impact on Big K. Now lot of readers don’t know what in the world does ‘weakening dollar’ mean. It simply means that the value of dollar is going down! For us, the mighty Indians, it means that the value of rupee is going up! Great news, isn’t it? 🙂
But I am worried. The reason is obvious. It is going to affect trillions of software engineers in India. According to reliable sources (#), 99% of the software engineers that India produces, work in services industry. With the biggies like Infosys, TCS, Satyam, HCL, Wipro etc., our software industry is full of companies which service the software that the rest of the world makes. Naturally, the whole industry is dependent on the dollar. Our companies earn in dollars and pay (the salaries) in rupees. The lower the value of rupee, the higher are our profits.
So, as the dollar weakens, we sweat. We would never want the dollar to be cheaper than the rupee. Aye!
I think & I think! What’s wrong here? If we want to be a super-power, we want a strong currency! (Welcome, Debate) I do not understand finance ( sssh! ) and I do not hesitate to admit that (I’m soon going to start my own finance-primer). China keeps its currency @ a lower value than the dollar by having special rules & regulations. I don’t understand the fun in being cheap laborers.
Infosys, Wipro, TCS – start making software products and sell them! You can do that!
-The Big K-
# – My imagination.