But the BJP has a different explanation. Before 2014, the rupee fall was due to incompetence of MMS and PC. After 2014, it was due to "global factors".
When I was in school (i.e. before 1966) the rate was Rs4.75=1USD and Rs13.33=1GBP. It was devalued to Rs7.50=1USD around 1966 (or was it 1969?). I am sure of these figures.
Good article,the auther would have done better had he informed when the Rupee was stronger than the Dollar, further what India should do to bring Rupee at par with Dollar. Siddhartha Bhattacharyya Kolkata
As in the last paragraph it is mentioned that over valued rupee will affect exports and in turn it will make imports cheaper it would be a threat to domestic market. Its absolutely wrong to say so, instead of thinking it as negative way why cant india's production and service sector makes improve efficiency by cutting down the cost of production and with good govt control over quality aswell quantity, if it is managed in proper way there is no need to depreciate the money value artificially to help exporters.. and one the other hand import restriction should be made as bulk purchase from international market should be strictly screened before giving approval.
If the said things are done in a proper way, rupee appreciation would only benefit india as indian currency outflows will be lesser which will boost the economy
Re: My conclusion
by G SATYANARAYANA reddy on Sep 10, 2015 03:14 PM
Above article makes little sense as the author says depreciated rupee is benificial since as our imports are far more than exports China exports lot more than they import and has ten times than our foreign exchange reserves and all are in US bonds and now they are controlling world economy As we produce little and our labour laws are so lousy We can never compre with China or produce goods like them and export High value of rupee helps the country not hurts but for that we need well deciplined economy and leadership which we dont have
As in the last paragraph it is mentioned that over valued rupee will affect exports and in turn it will make imports cheaper it would threat to domestic market. Its absolutely wrong to say so, instead of thinking it as negative why cant india production and service sector improve the efficiency by cutting down the cost of production and with good govt control over quality aswell quantity, if it is managed in proper way there is no need to depreciate the money value artificially to help exporters.. and one the other hand import restriction should be made as bulk purchase from international market should be strictly screened before giving approval.
If the said things are done in a proper way, rupee appreciation would only benefit india as indian currency outflows will be lesser which will boost the economy
why we can't increase our export?Is it necessary for us to import banarasi saree fibre,underwear,banian,pen,gift item,battery,paper,shoe,chappal,diwali item and very small small things?Are we so inefficient that we could not manufacture these items in our country?It is all politics by politicians to reach benefit to only big groups like tata,ambani,adani,jindal etc.They receive the minerals like coal,iron etc at a very cheap rate from mine and utilize it.Due to this only the small enterpreneur is unable to beat competition of china and he stops manufacturing.According to WTO agreement,we can't stop import unless the product is cheap in our own counrtry.We should give this iron,coal and other mineral at a very subsidized rate to our small industrialists so that their production could be cheaper and we can stop import and our currency devaluation could stop.The pm intention is required in it only.A honest pm is required and in fact a pm is required,since previous pm mr manmohan singh was working only as a collector and thinks only how to raise govt revenue only by bringing new taxes like tds and service tax in india.Now present pm is social welfare minister only,he only runs safai abhiyan,jan dhan yojana,bima yojana etc.This can be work of only a social welfare minister.A PM should be highly versatile and think how to remove poverty from counrty,how to give roti,kapda and makaan ,justice,education to everybody.Here person dies in the wait of justice.Do some thing Mr PM.
Re: enhance export
by R Chakravarti on Sep 10, 2015 07:30 PM
Such restrictions were there earlier but were removed mostly in 1991 to introduce competition and thus efficiency. Now we can't be in the WTO and also have restrictions.
