All these developments could actually be good news for the industry and economy. And corporations that have their receivables in dollars are set to gain. I say this because the depreciation of the rupee spurs global competitiveness of Indian goods and services abroad thereby triggering economic growth. A soft rupee would remove the speed breakers which have characterized our IT industry. Moreover, it is good news for the low import intensive and price sensitive items such as textiles which are facing intense competition from China in the post quota regime. The exporters of capital goods could also feel relieved as they can now quote lower rates while bidding for projects in the global marketplace.

Having highlighted the positives, I also realise that the weakness of the rupee could push inflation further due to an increase in price of oil and other commodities .This could adversely hit the big importers who are raring to compete in the international arena in the basis of low input costs. A set back to new investment could also be anticipated. However, considering that the depreciation of the rupee has come at a time of the southward movement in crude oil prices, one can reasonably assume that the adverse impact of the rupee depreciation would be whittled down and the net result of this development could well turn out to be positive for our economy.

Interestingly, the rupee's decline has come at a time when the stock market is witnessing the most spectacular rise in its history, scaling new heights in the recent past.Though of late the stock market has been exhibiting a vacillating performance, there is no cause to worry as the FIIs are reported to be back in the market which is well supported by inflows from domestic investors such as mutual funds among others. All this shows that our economy is set to scale new heights and reaffirm its place in the comity of nations.

The upbeat sentiment, in my view, provides an ideal millieu for decision makers in the government to fix their policies-both domestic and external- which would move the country forward. Hence, I feel, it is time to remove the road blocks which prevent significant foreign investment especially in infrastructure. I also favour aggressive export promotion efforts by the government and the use of India Brand Equity Fund to create the India brand to boost export growth. And most importantly, I support a political consensus to usher in second generation reform which would revive investment demand and further rejuvenate industrial growth in the economy.

Reverting to Chamber activities, I would like to draw your attention to the major programmes held during the month in this centenary year. The highlight this month, to my mind, has been the function held to celebrate the historic occasion of the release of Commemorative Postage Stamp which is in recognition of our Chamber completing 100 years of service to the community. The release of the postage stamp, in my view, secures for us a place in the annals of history as a Chamber which made a singular contribution to the development of our nation. Equally momentous, indeed, has been the Centenary Managing Committee meeting held at the State Bank of India which I felt brought back nostalgic moments about the times gone by. The Seminar on good governance inaugurated by Dr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission and a meeting with the H.E. Mr Vaclav Klaus, President, Czech Republic were the other events of the Chamber during the month. The Shriram Memorial Lecture on 19th November, wherein Dr Dipak Jain, Dean, Kellogg's School of Management spoke on the competitiveness of India Inc was, I am sure, another noteworthy event which would be worthwhile to reminisce in the future.

The Centenary year is coming to a close on 21st December 2005 with the valedictory address by Dr. A.P.J. Abdul Kalam, Hon'ble President of India. But in the intervening period, the Chamber is planning an array of significant programmes. I would request all the members to participate in these events and help in making them a success.

K. N Memani
President