India doesn't need a weaker rupee to boost Exports
India does not need a devaluation of rupee for now, says senior economist at CLSA. At this point currency devaluation could be a costly affair. It may spook investors and may impact capital flows.
The government is considering a proposal for a weaker rupee in an attempt to make it more competitive. According to a Reserve Bank of India , rupee has been over-valued by 10-12 percent. This may be an attempt to make Indian goods more attractive to foreigners as they would become cheaper. This will boost export competitiveness. Instead, focus should be on productivity gains and enhancing structural competitiveness. This will increase export volumes and will help exchange rates.
India does not need a devaluation of rupee for now, says senior economist at CLSA. At this point currency devaluation could be a costly affair. It may spook investors and may impact capital flows. 
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