A sizeable portion of the investment made in the country based on an artificially low exchange rate will turn out be uncompetitive when the exchange rate normalizes. One might argue that this reflects the experience of Japan in the 1990s and possibly the experience of parts of Chinese industry today.
An undervalued exchange rate might have made sense in the past for countries that had weak firms and small domestic markets. India is in a very different position today from the export-led East Asian tigers when they embarked on their growth path. The ideal exchange rate for us is neither strong nor weak, it is just right.