{"id":3093,"date":"2013-08-29T11:33:15","date_gmt":"2013-08-29T06:03:15","guid":{"rendered":"http:\/\/patriotsforumindia.com\/?p=3093"},"modified":"2013-08-29T11:33:43","modified_gmt":"2013-08-29T06:03:43","slug":"italian-sirocco-melts-indian-rupee-r-k-ohri","status":"publish","type":"post","link":"https:\/\/patriotsforumindia.com\/?p=3093","title":{"rendered":"ITALIAN SIROCCO MELTS INDIAN RUPEE – R.K.Ohri"},"content":{"rendered":"

\"Indian-Rupee-dollar_01\"<\/a><\/b><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

ITALIAN\u00a0 SIROCCO\u00a0 MELTS\u00a0 INDIAN\u00a0 RUPEE \u00a0<\/b><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0Wages of Living Beyond Means<\/b><\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ram Kumar Ohri,\u00a0 IPS (Retd)<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

Yesterday on August 28, 2013, \u00a0the Indian Rupee\u00a0 touched a new low. It\u00a0 breached the giddy downslide of Rs. 68 to a dollar and closed at Rs. 68.80 Paise.\u00a0 The British pound was traded around Rs. 103. Since May 2013 the Indian rupee has fallen by 20 percent which is believed to be the steepest decline ever recorded in a short span of\u00a0 three months.\u00a0 Meanwhile, industrial production during the last quarter has gone down to \u00a0minus 2 percent, while the job market has shrunk enormously. No new jobs are being created and even those already employed live in the fear of receiving pink slips!\u00a0 Share market has plummeted to a new low and investors have lost millions of rupees. In one single day, i.e., on August 27, 2013, the foreign investors sold shares worth one billion rupees. \u00a0By all accounts the rupee is headed towards further fall to the level of\u00a0 Rs. 70 per dollar. The Prime Minister is dumb-struck and discomfiture of the country\u2019s clueless Finance Minister is writ large on his forehead.\u00a0\u00a0 \u00a0There are pessimists \u00a0in\u00a0 India\u2019s financial market who anticipate rupee\u2019s fall to Rs. 75-80 per dollar before Diwali. \u00a0Meanwhile in this gloomy weather the speculators and punters are busy merry-making.<\/p>\n

 <\/p>\n

The \u00a0analysts of BNP Paribas, a renowned France-based group of \u00a0financial experts, \u00a0were quick to reduce the estimated \u00a0GDP\u00a0 growth of India from the previous estimate of \u00a05.2% to a meagre 3.7 percent for the financial year ending March 2014.\u00a0\u00a0\u00a0 It will be the lowest GDP growth \u00a0recorded since 1992. \u00a0\u00a0According to informed sources, \u00a0our foreign exchange reserves have depleted so fast that now we have\u00a0 foreign exchange in kitty which can meet the cost imports barely for\u00a0 six months. It may be recalled that\u00a0 at the time of economic crisis of 1992 the country\u2019s foreign exchange was good enough to meet the requirements of two months import bill.<\/p>\n

 <\/p>\n

The painful narrative of the limitless melting of Rupee is a long story which can be analysed and summed up only by\u00a0 professional economists.\u00a0 Prima facie<\/i> the Italian sirocco<\/i> has hit India very hard.\u00a0 Its heat and fury has taken an exceptionally heavy toll of Indian economy.\u00a0 The singeing of economic growth caused by reckless splurging of funds, \u00a0ostensibly on advice of the \u00a0National Advisory Council led by Sonia Gandhi, \u00a0has led to a dramatic decline in investments by international as well as Indian entrepreneurs.\u00a0 The reasons are well known. One important reason\u00a0 was massive corruption brought to the notice of public by the Comptroller & Auditor\u00a0 General,\u00a0 Vinod Rai.<\/p>\n

Apart from an exceptionally high Current Account Deficit of more than 88 billion dollars which comes to a staggering 5.2 \u00a0percent of the GDP, the last few years have seen\u00a0 a quantum jump in fiscal deficit. \u00a0According to the latest data for the quarter ending April-June, 2013, India\u2019s fiscal deficit stood at the abnormally high level of 43.7\u00a0 billion dollars. \u00a0\u00a0\u00a0In percentage terms it comes to\u00a0 more than 5 percent of our GDP which is very high. \u00a0Ideally\u00a0 the country\u2019s fiscal deficit should have been limited to 3 percent, as envisaged in the Financial Reponsibility Act of 2004. The Sonia-sponsored Food Security Bill\u00a0 is likely push up the fiscal deficit further.\u00a0 It can lead to spiraling inflation which might become unmanageable. \u00a0\u00a0It is a well known fact that in \u00a0every country, every economy, \u00a0the fiscal deficit is met by printing additional currency notes !\u00a0 The resultant high inflation and fall in production leads to a\u00a0 crisis situation\u00a0 in which price rise become endemic\u00a0 and uncontrollable\u00a0\u00a0 – a situation which\u00a0 presently stares us in face.<\/p>\n

The first damage to Indian economy was done by the notoriously famous Mahatma Gandhi National Rural Employment Guarantee Scheme (popularly called MNREGA) launched\u00a0 in February, 2006.\u00a0 On a rough count\u00a0 doles worth approximately\u00a0 \u00a0$ 40-50 \u00a0billions were pumped into the financial system during the last seven years. \u00a0Everyone knows that MNREGA is a big ticket money-leaking scheme.\u00a0 Undoubtedly the scheme was a grand success as a vote-catcher\u00a0\u00a0\u00a0\u00a0 Soon this bucketful of\u00a0 half-baked welfare scheme was followed by the introduction of\u00a0 a number of\u00a0 money-leaking schemes, launched as welfare measures.\u00a0 On top of it the UPA government has passed the financially controversial law call Food Security Bill which is likely to impose an additional burden of Rs.1.50 lakh crores on\u00a0 the nation\u2019s \u00a0battered exchequer.\u00a0 For getting out of this financial mess created by Italian sirocco<\/i> two options are available. The first option available to the Finance Minster is to go to the International Monetary Fund for succour. The second available option could be to impose financial emergency under Article 360 of\u00a0 the Indian Constitution.\u00a0 The latter option might cause more \u00a0confusion \u00a0and distress \u00a0to the public\u00a0 –\u00a0 at least temporarily.<\/p>\n

 <\/p>\n

The panic caused by the ongoing \u00a0economic fiasco is so widespread that all kinds of jokes are afloat on social media \u00a0\u00a0–\u00a0 some printable, others unprintable. One such jokes says that time has come to check up whether the degrees in economics held by Dr. Manmohan Singh and Montek Singh Ahluwalia, two celebrated economists, \u00a0need to be checked\u00a0 to ascertain whether these are forged or genuine.<\/p>\n","protected":false},"excerpt":{"rendered":"

                  ITALIAN\u00a0 SIROCCO\u00a0 MELTS\u00a0 INDIAN\u00a0 RUPEE \u00a0… more »<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":2949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-3093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-2"],"_links":{"self":[{"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=\/wp\/v2\/posts\/3093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3093"}],"version-history":[{"count":2,"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=\/wp\/v2\/posts\/3093\/revisions"}],"predecessor-version":[{"id":3095,"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=\/wp\/v2\/posts\/3093\/revisions\/3095"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=\/wp\/v2\/media\/2949"}],"wp:attachment":[{"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patriotsforumindia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}