Given the quantum of resources and investments required, corporates tend to compromise on the R&D or depend on reverse engineering to manufacture cheaper alternatives. For achieving a greater share in world trade of quality products, corporates need to create or tap resources which will provide original ideas through R&D.
Declining number of Ph.Ds in the country in a way shows how innovation and creativity deficits could affect quality investment efforts. Currency rate channel Movement in exchange rates both in India and abroad is primarily conditioned by the movement in the US Dollar due to the “Exorbitant Privilege1” that the currency enjoys.