India gets cheaper

An untold story in the present financial crisis is how the Indian rupee is now at 50 rupees per dollar compared to last years 39 rupees per dollar.   That basically means that all Indian offshoring projects now get 25-30% cheaper to you if you are dollar based.In addition the Indian stock market at 9000-10000 levels is 50 % down from last year.This effectively means for a new dollar investor, deal valuations become as much as 70% cheaper.

Even discounting for added risk sensitivities and projected lower growth rates of 7 % only in 2009, India today is much more attractive for investment and outsourcing purposes.

Author: Ajay Ohri

One thought on “India gets cheaper”

  1. The problem of course being that there are no dollars floating around and there is a good chance that INR would fall to 60; Not to speak of the Indian stock market which follows the patterns of the international markets, and may fall still downwards.

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