Harish Palaniappan's

Indian currency is currently undergoing heavy re-valuation against the global benchmark US dollar.

Indian rupee is going on a forward looking correction.. It is rising. good for india..but will keep business especially software pricing for multinationals panicky.

Considering what Euro conversions did for many countries in Europe, I am excited at every Rupee the dollar falls cheaper.

Track currency rates here

The Story so far:
Software outsourcing has done a lot for India.. which many other industries in the past tried very hard to do for India, but with smaller effects.

Who markets India
The first strong attempt(in my opinion), and also the long standing attempt in raising indian values in not just economy but also in life, come from unfortunately, you never guessed this... Bollywood.

People could sell hindi movies abroad even before days of sholay... they say one film 'Mother India' which was (if i am right) a movie from pre-independence era, has been the closest to getting an oscar until Lagaan was nominated.
Imagine, Bollywood could sell movies, even before software was just startup in india, and even before ISRO became known for its commercial satellite capabilities.

Many articles in magazines in the west have pleased Indians by saying India changed Software. This is in reference to lowering software costs globally.

But this has also costed a burden to Indian Software, that almost 70% or more software companies in India always try to feast on the lower costs and only keep quality as second priority.

Whenever currency revaluation happens, software companies in India panick. And we know this when our relatives ask us the stupid question "Will software be there for another 5 years?"

As obvious, the most interested people in Indian currency's value work for the central regulatory bank in India 'Reserve bank of India' RBI. And everytime the money seems to grow faster, the RBI attempts to downplay the effect by increasing local lending rates across the nation, and by subsidising foreign exchange rates in a manner, that I don't seem to understand, but that which gets the Indian Rupee valued a little lower than it is actually worth. The American government too, they say, tries to limit the Rupee's rise because American businesses have big interests in Indian Software and services industry.

People prominently watching the software outsourcing radar know that most Indian companies indeed heavily rely on the cost of the US dollar for being competitive in the market. This always had to go, to allow more crediblity to real players in the industry... and as they keep telling.. to Create a level playing field for "all" Software Businesses (I believe "all" here means, companies that care about quality, and those that care about cheap costs for customer).

Finally, the narrow line of quality software in india is broadening, because of currency revaluation.

How currency re-evaluates - In my observation :

1. Businesses that transact using the currency grow, on their interests and efforts to grow. Indian Software giant Infosys is popularly credited for starting the growth drive in the software industry for India.

2. The services of these businesses get valued higher due to better demand.

3. This boosts/motivates "like" Businesses, and the general trust and credibility on the industry or industries grow.

4. The boost triggers a chain reaction in all Businesses getting valued higher for thier services. The general worth of the services or the Products increase.

5. Higher demand, and higher valuation of Businesses somewhere underground has many links to the value of the stocks on the market, to cost of living, to inflation, to asset values, to costs of everything in the adjacent markets, and finally everything links to the value of the Currency the Businesses transact on.

6. As the above point, has too many parameters some known, some unknown, some controllable, some uncontrollable, no regulatory bank or government would be able to stop the revaluation and only allowing it would be the best option, though they have to definitely monitor the impact and minimize it by forcing regular valuation corrections to help the people who use the currency.