Currency Fluctuations and its Implications on India’s International Business

Currency Fluctuations and its Implications on India’s International Business

Mani Shankar Aiyar, former Petroleum Minster of India addresses NATIONAL CONFERENCE ON INTERNATIONAL BUSINESS MANAGEMENT organized by Dr. DY Patil University’s Department of Business Management at Dr. DY Patil University’s Nerul Campus

The International Business industry is one of the fastest growing sectors in the Indian economy. There are several challenges and issues staring at the Government and the industry, which need to be addressed. In a bid to understand these, Padmashree Dr. DY Patil University’s Department of Business Management organized a one-day `National Conference on International Business Management’, with Mr. Mani Shankar Aiyar, former Petroleum Minister of India as the Chief Guest, at the Dr. DY Patil University’s Auditorium in the Nerul Campus, Navi Mumbai.

Dr. Ajeenkya DY Patil, Chairman, Ajeenkya DY Patil Group, Pro–Chancellor, Dr. DY Patil University and Hon. Consul General of Guyana, exhorted, “The International Business Industry is witnessing a paradigm shift from an era of `physically based’ to a new model, which is `technology and knowledge based’. Such a shift in business model spells more opportunities for Indian International Business companies. This conference is to provide a platform to create awareness and analyse the current scenario and status of International Business in India.”

Acknowledging this effort by the Dr. DY Patil University, Mr. Mani Shankar Aiyar congratulated the organizers for keeping in mind the contemporary relevance and fundamental importance of issues relating to these sectors. In the course of delivering his keynote address on `Currency Fluctuations and its Implications on India’s International Business’, he said, “A currency’s level has a direct impact on nation’s international trade, or its exports and imports. In general terms, a weaker currency will stimulate exports and make imports more expensive, thereby decreasing a nation’s trade deficit or increasing surplus over time. Conversely, a significantly stronger currency can reduce export competitiveness and make imports cheaper, which can cause the trade deficit to widen further, eventually weakening the currency in a self-adjusting mechanism. But before this happens, industry sectors that are highly export-oriented can be decimated by an unduly strong currency. Foreign capital will tend to flow into countries that have strong governments, dynamic economies and stable currencies.”

Explaining the significance of a stable currency in making India a preferred investment option, he said, “A nation needs to have a relatively stable currency to attract investment capital from foreign investors. Otherwise, the prospect of exchange losses inflicted by currency depreciation may deter overseas investors.”

Endorsing Mr. Mani Shankar Aiyar’s views on the effects of currency fluctuations, Prof. Dr. R Gopal, Director, Department of Business Management, Dr. DY Patil University, said, “The topic of Currency Fluctuation is the most important topic today in the light of the huge amount of inflation and the dollar fluctuations. This Conference was conceptualized with the specific aim of bringing together most innovative minds from the International Business industry and Academia.”

The Conference saw key senior officials from Indian MNCs, Indian PSUs, Trading Houses and Foreign Consulates in attendance. A big number of faculties, students from various institutions of Mumbai and Navi Mumbai also participated in this Conference.