What are the impacts of rupee appreciation to the Indian economy? I feel
that its going to be bad for the IT industry.
Assume you are an exporter. You are exporting toys at the rate of 1$ to the US for which you are getting 50Rs (Where 1$ = 50Rs). Now, due to some factors, the rupee has appreciated from 50Rs to 40Rs against the dollar and because of competition, you are unable to raise the price of your toy above 1$. You will get 40Rs instead of 50Rs for the toy you sell, this reducing the exporter's margin.
The case is vice versa if you are an importer.
In a static scale, it reduces national income because of decrease in net exports (exports - imports) and reduce inflation to some extent.