Thursday, August 29, 2013

Rupee Weak At The Knees

It's 22 years now that the ghost of economic crisis is again casting its shadow on the Indian Rupee. It is strange coincidence that the face steering the nation is the same- Manmohan Singh.

 In 1992 he revived the economy and unshackled it from the permit-license raj. Today, at the fag end of his career he is compelled to watch the economic empire he so painstakingly crafted crash like a pack of cards.

Prime Minister had to go on record in Rajya Sabha stating the obvious - the economy is going through turbulent and tough times. He pointed twin factors that has created the scenario. US monetary policy and Syrian crisis.

Syria crisis is a latecomer, which has but added to the continuing woes.

US monetary policy and its impact on FDI is another ball-game. The question here is why the Indian economy is so dependent on FDI and US monetary policy. It shouldn't be. The economy should have inbuilt structures that would have made it independent of foriegn upheavels. That it wasn't, is now being made to reflect on the economy.

If now it is time to take stock, then policy measures should be initiated to make up for the weaknesses that have crept in and have shown up.



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