But even at 53 Rupee is still overvalued. Unlike other BRIC countries India is unique in having a service-based economy, thus india's economy is less relevant to the outside world than her GDP number implies. Just think this way every haircut contributes to India's economy, but to someone living in Japan for example, that is completely irrelevant.
I think India's continuing weakness in manufacturing will lead to further drops in the value of Rupee in the long run.
indian rupee is a highly undervalued currency, it is believed the rupee will appreciate if not more at least in the early 20s over a period of time but that will take time, the industrialization phase that india is seeing, the rupee is expected to trade between 40-50 mark.
why isnt rupee in focus like yuan? indian exports for the moment do not threaten the west exports as much, the rupee remains convertible, the rupee has shown sings of swings where in 2007-08 it appreciated from the lows of 47-48 that it touched then to 38-39, and when there is pressure on rupee and the government isnt willing to involve it self much it can depreciate from 45 to 53, so there arent any deliberate signs of manipulation in the exchange value of rupee.
there is already a decent push in manufacturing, the problem in manufacturing isnt the valuation of rupee but internal factors like labor reforms, implementation of GST, land acquisition, infrastructure constraints, etc.
indian exports when the going has been good have consistently shown the potential of growing between 20-25% as a matter of fact manufacturing as a % of gdp has a bigger share today than it was a few years back, so there are enough indications that things can run on track, but now the more important issue is to address the bottle necks that exist fundamentally within.
