To me, a veteran Economy observer for now a quarter of a century and more and a patriot to boot it really pains to see my Rupee being savaged like this by external forces aided by some internal vested interest demons and we are clearly helpless !
It is abundantly clear that the root of this lies in the Crony Capitalism ~ it is the Culprit
Our political and bureaucratic and financial and corporate czars have literally sold out our nation on a host of fronts allowing us to be rammed despite full knowledge of the ramifications in the short and long term
An extraordinary nation run down by ordinary men ! ~ their bankruptcy of Mind and Intention has bankrupted our Nation ! ~ and they now profess Financial Literacy and Financial Inclusion as Twin Prime Objectives ! ~ Do they really care ! ~ They’ve stashed away for Good ~ for Generations ! ~ and yet lead us ~ rebelling against the Supreme Court decision to ban Convicts from being MPs and MLAs and not allowing a genuine Lokpal Bill that will make all of them accountable in the fullest sense be introduced
While a depreciating Rupee actually is an Export Booster and a good thing if it can be leveraged~ but in reality the situation is that our Imports are US $ 500 b while Exports are US $ 300 b ~ our FX Reserves have been @ US 300 b for five years now but our external debt has zoomed to US $ 400 b !
In 1991 our Rupee was Rs 18 to the US $ before it was devalued by 18% overnight by the FM and now PM,Mr Manmohan Singh as he introduced a host of modern economic reforms and excited the Nation
In 22 years since it has sunk past Rs 60 to the US $ despite achieving high GDP Growth rates in many years ~Our Rupee should rise when our Economy rises ! unless of course USA rises relatively more !~ but how do you explain that our Rupee continues to sink despite USA battling recession and economic woes and being a highly leveraged economy !
Is our continuing dependence on Rising Oil Imports to fuel our Economy to achieve high GDP Growth Rates solely to blame !?
Those who lead us and make Policies that rule us simply have failed to understand the practical co-relation & realities and impacts of Inflation,Interest Rates and Exchange rates
These political leaders have Miserably failed in negotiating hard with USA & Eurozone and have been bullied and ,I daresay, even blackmailed in allowing them access to India cheaply when their own markets are saturated and they need ours for their survival ! ~ it’s like when these countries make economic decisions on their subsidies for instance they need to protect their own and win but when India makes such decisions too,they need to win too !!!