Chief Economic Advisor V Anantha Nageswaran on Thursday advised India Inc not to seek protective cover of weak currency as it is not a substitute for productivity and investment in research and development.
A weak currency can be good for exporters, making their products relatively less expensive for buyers abroad.
Nageswaran further said the reliance on weak currency should not be instrumental to boosting exports, "if anything, it should be part of the policy arsenal to be deployed contextually, but not as a substitute for productivity, investment in R&D and quality, but as a complement at best".
Nageswaran further said the reliance on weak currency should not be the answer, if anything it should be part of the policy arsenal to be deployed contextually, but not as a substitute for productivity, investment in R&D and quality, but as a complement at best.
"We should not be thinking about in terms of the transformation of competitiveness, which is to continuously expect the ...