Can someone explain in simpler terms, the relation between labour-intensive manufacturing and Rupee value, as mentioned in this paragraph:
Ordinarily, the large deficit in merchandise trade would have pushed down the rupee’s external value and made low-cost, labour-intensive manufacturing competitive. But the increasing flood of dollars from services exports props up the rupee and loads the dice against labour-intensive manufacturing, which already suffers from higher-cost infrastructure and the absence of scale. Even if “China plus One” offers some new labour-intensive opportunities, India’s trading success may lie more with value-added exports, for which Dr Forbes’s point about innovation and R&D becomes crucial.
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