As the Cost of Rupes Rises, Exports are Damaged...

In the southern city of India, Coimbatore, known as the capital India's textile industry, began abolishing old textile industries in order to make room for the "Alliance Mall". With more than million square feet of retail space, a hotel, condominiums, and offices is being built by an Indian developer with a financial aid from a British retail company. As seen in the New York Times, India is williing to let their rupee prices skyrocket.

The Indian rupee is soaring — up 9 percent against the dollar in the last 16 months. That has taken a toll on exports like textiles by making them more expensive on the world market. And the strong rupee poses longer-term threats of overheating the economy.

 Indian financial companies are so eager for foreign investment that they are willing to endure the damage of stronger rupee inflicts on exports.However the big question is, will their economy take a hit because of this tactical move? Some believe, by doing so they will create a modern consumer economy as time progresses. Seeing as this could be a potential threat to the country, many people are still willing to go through it because they know the influence of the captial has helped 9 percent of the annual growth in the economy. Whether it is a good move or not, India is going through with it.