Every nation is happy when its currency appreciates. But the economic fallout is huge to an industry which solely depends on exports. India’s rapid growth in all the sectors after globalization has made Indian Rupee to appreciate enormously, especially against USD. Some of the Indian companies’ over dependence on the US, has also played a role in appreciation of Rupee, and thereby causing a dent in their profits.
Now Indian export business entities have woken up to the fact that to counter the Rupee blues they have to explore other markets. This is seen as a good sign for India’s next phase of economic growth. Until now Indian export companies looked only at the instant profitability and blowing to the wind the rules of building long term business relationships. This fact has made them think in the direction of countries which have similar socio–economic natures.
Latin American countries are socially and culturally very similar to that of Indians, they are religious, they give importance for family ties, they have great respect for any kind of relationship, etc. Language was one of the major reasons why India did not make major inroads in these markets, but with the modern available language tools, even that has been made easy.
In a span of 1 year India has signed several MOU’s with countries like Brazil, Mexico, Chile, etc. making the paradigm shift very obvious. If this trend continues the Rupee appreciation against the US Dollar is not going to make a huge difference as it is now felt by most export houses.
In near future, even the preferred currencies are also going to change. Consolidating the fact that globalization is not finding a way out of saturated markets, rather to create a level playing field for each and every business initiative.
