Will indian currency value overtake the us dollar in the future?
Answer:
Overtake? Right now the USD is equal to 40.32 Indian Rupees. For the Indian Rupee to overtake, the USD would have to fall by more than 100%. I don't think thats going to happen in a hurry, simply because that is not supported by the purchasing power theory or other flows. However, my personal opinion is thet the Indian Rupee will continue to strengthen against the USD for the next few years, supported by buoyant economic growth in India, and healthy capital flows. I would first like to see the Indian Rupee strengther to around 31 to a USD, which is the pre south east asian crisis level.
Hope this helps.
regards
The US will almost surely one day - no longer be the pre-eminant economic power in the world.
India is a good candidate to overtake.
Russia and China could also but neither is free enough nor corruption-free enough in my opinion.
With that said, there would be a long, long way to go I feel.
India has the human resources but I know too little about their natural resources. Still though, stablity, politics, growth, location, neighbor-relations (Pakistan excepted, that may be the fly in the ointment. Pakistan and India cannot get along.) most factors are promising. China, the oil-rich interior countries like Uzbekistan, etc. and Russia are all relative neighbors, with good relations as far as I know, logical trading partners. India besides having great growth potential of it's own can be the gateway and trading and commerce center for many of these.
On a downside: while India's population is well educated it seems to me so many of their most talented leave, and florish in other countries. India should seek to produce more high value-added products, rather than lesser products and services. Although, Financial Services is the highly valued product they could enter into... but the rupee is so low at this time... I don't see that yet either.
In value? I dont think so until hyperinflation vaporices the dollar. But in stability and desirability yes, it has already taken over the dollar.
yes it is possible and perhaps one day india will outsource their work to the u.s. in order to keep costs down.
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