Sustained over a long period of time, an overvalued exchange rate undermines the competitiveness of the export sector. In our situation, competitiveness was further aggravated by an anachronistic system of determining wages and salaries that completely ignores the health of the economy. It’s a system that works like drug.
The more you give the shots, the more you get addicted – until you drop dead. There is a correct value of the exchange rate of the rupee that balances the needs of growth on the one hand and consumption on the other. In 2015, there was a consequential re-alignment of the exchange rate of the rupee.