Where are the price cuts?

The rupee has gone from strength-to-strength against the dollar, rising 13.82 per cent from Rs 46.95 against the greenback on July 19, 2006, to Rs 40.46 now. Indian exporters, especially the small ones who don't hedge their foreign exchange exposures, are crying themselves hoarse about the impact it will have on their bottom lines. Yet, prices of several popular consumer imports, particularly electronics, have not declined in tandem with the rising rupee. No wonder the grey market is thriving.

Apple iPod 30GB

US price: $249 (Rs 10,209)
India price: Rs 17,600
Price differential: 72.39 per cent

Sony Playstation 3 60GB

US price: $599 (Rs 24,559)
India price: Rs 39,990
Price differential: 62.83 per cent

Cars
The stronger rupee also has not resulted in any downward revision in the prices of high-end imported cars. That said, the German "Gang of Four" (Audi, BMW, Mercedes and Porsche) are believed to be considering price reductions for some of their completely built-up imports. Prices of cars that use significant amounts of imported components have also not dropped as manufacturers, already strapped for margins, prefer to absorb the benefits to their bottom line instead of passing them onto consumers.

But not all products are getting more expensive.

Nokia N95

US price: $699 (Rs 28,659)
India price: Rs 32,500 (down from Rs 37,000)
Reduction: 12.16 per cent.