Rupee hits new record low of 57.12 today - Will Rafale deal Cancelled?

[kkacer]

Will the Rafale deal be Cancelled?

India rupee drops almost 50% in 1 years !! (US dollar/Euros)

The Rafale deal India is $10 billions US dollar/Euros, Now India need to pay almost $15 billions due to Rupee depreciation.

Very Terrible! Will the Rafale deal be Cancelled?

http://img4.bbs.**********/uploadfiles/images/2012/06/22/0622150005710.JPG

India Rupee hits new record low of 57.12 today, it was $44 in Auguest last year, now only 57 and still free falling.. maybe below 60 very soon

USD INR Chart | Dollar Indian Rupee Real Time Chart

http://www.business-standard.com/india/news/rupee-fall-jacksindia\s-arms-purchase-bill-/459638/

http://www.business-standard.com/india/news/rupee-fall-jacksindia\s-arms-purchase-bill-/459638/

 

[Koovie]

1.If it gets costlier, they will have to invest more money back to India
2. MMRCA took already too long, they wont cancel it
3. Seriosly dude, do even have a real life ??????????????????????????????????????????

 

[Imran Khan]

damn they make everyday new record we should make more records then india

 

[Vibs]

1) This deal would be spread over a decade while India's defence budget only for the year 2012 $38.5 billion. I'm sure we can find money lying around somewhere to pay for this deal .

2)The deal is going to be in Euros, not USD. Granted the INR is falling against the Euro as well, but not at the same rate as against the USD. Infact Euro isnt exactly sen as a stable currency for the future. If anything, given the situation Europe is in right now,the actual outflow from India for this deal could go down significantly.

 

[kkacer]

1) This deal would be spread over a decade while India's defence budget only for the year 2012 $38.5 billion. I'm sure we can find money lying around somewhere to pay for this deal .

2)The deal is going to be in Euros, not USD. Granted the INR is falling against the Euro as well, but not at the same rate as against the USD. Infact Euro isnt exactly sen as a stable currency for the future. If anything, given the situation Europe is in right now,the actual outflow from India for this deal could go down significantly.

so sorry to tell you it's no difference = Rupee drop 50% vs Euros

the india government’s fiscal deficit is much bigger than earlier projected and the rupee fell sharply against the dollar and the euro, drop almost 50% in one year.

 

[Sergi]

Ok but tell me one thing

Are Chinese members obsessed with Rafale ???
Let anything happen in India you guies just just to Rafale deal will be canceled.
My dear friend "Sino challenged" once declare India don't have money so they can't buy Rafales. Are you guies scared of Rafales or what ???

so sorry to tell you it's no difference = Rupee drop 50% vs Euros

the india government’s fiscal deficit is much bigger than earlier projected and the rupee fell sharply against the dollar and the euro, drop almost 50% in one year.

Sorry to disturb your dream but do you know there is a provision of Emergency fund in Indian budget ???

 

[kkacer]

Ok but tell me one thing

Are Chinese members obsessed with Rafale ???
Let anything happen in India you guies just just to Rafale deal will be canceled.
My dear friend "Sino challenged" once declare India don't have money so they can't buy Rafales. Are you guies scared of Rafales or what ???


Sorry to disturb your dream but do you know there is a provision of Emergency fund in Indian budget ???

firstly, i am not Sino challenged, secondly i just tell you this bad news but very true

 

[Gandhi G in da house]

Oh! so it's the Rafale that they are worried about ? okay , now I get it

 

[Rajaraja Chola]

Ok but tell me one thing

Are Chinese members obsessed with Rafale ???
Let anything happen in India you guies just just to Rafale deal will be canceled.
My dear friend "Sino challenged" once declare India don't have money so they can't buy Rafales. Are you guies scared of Rafales or what ???


Sorry to disturb your dream but do you know there is a provision of Emergency fund in Indian budget ???

An economy news related to defence spending...
No wonder Chinese call themselves high IQ..

 

[Sergi]

firstly, i am not Sino challenged, secondly i just tell you this bad news but very true

I didn't say you are Sino Challenged
I didn't say news is false. I said ok
I asked you something which you preffer not to answer

Why this Kolavari with Rafale ??? Where in the world you come on that MMRCA will be canceled ??? I think it's your personal opinion. So I asked you what's that all of you ( I mean china members including you ) came to the Rafale if anything happen in Indian economy ??? You never say Apache deal will be canceled

 

[SQ8]

India has enough reserves..
The rafale is NOT going anywhere.

 

[Gandhi G in da house]

I am a bit naïve about economy matters so can someone explain why the falling rupee is such a bad thing ?

I mean the importers will lose no doubt , but the exporters will flourish no ?

 

[DeathGod]

I am really appauled by threads like this. One needs to understand the basics of trade first and then comment on something like this.

Firstly, the exchange rate is usually mean reverting ( not by design but by the virtue of business cycles). Secondly, whenever such deals are made then one party protects itself from the change in forex rates by selling/buying forwards(or futures).

If India will be doing such a deal that she wont pay all the 10 billion at today's exchange rate. The payment will be in parts and the payment will be currency hedged.

Kya bakaiti hai bey!!!

 

[SamranAli]

im more concerned about Rupee than Rafale. lol.

 

[Vibs]

so sorry to tell you it's no difference = Rupee drop 50% vs Euros

, the india government’s fiscal deficit is expected to be much bigger than earlier projected and the rupee fell sharply against the dollar and the euro

So a drop of rs.66 per Euro to Rs.71 per Euro is a drop of 50%. Hmm...that's new to me. I'll have to go ask my math tutor for a refund.

Also could you answer the 2 points I raised specifically without resorting to trolling?

Why would a decade long procurement plan for $10 bn (out of which 50% would eventually be manufactured in India and hence part of the amount would go to Indian suppliers) be affected by the currency fluctuation when almost 4 times the same amount has been budgeted for one single year?

And do you still want to assume Euro is going to continue as strong as it is right now?