falling rupee against the US dollar

Press Statement of Shri Ravi Shankar Prasad, MP & Deputy Leader of Opposition (Rajya Sabha) on Sharply falling rupee against the US dollar indicates gross mismanagement of Indian economy by the Congress led UPA.

 

The Indian rupee sharp fall against the US dollar is at an all time low of 60.15 which in simple term means that one US $ means Rs. 60.15. In between May and July 9 it has depreciated from Rs. 53 to 60.15. Apart from seriously hurting national pride this drastic fall is directly related to the gross mismanagement of Indian economy by the present UPA Government. It has been the constant refrain of this Government that the fundamentals of Indian economy is strong but the fact is otherwise.

The Indian economy presently is at an all time low of the last ten years at about 5% and it may go even further down. The UPA has sought to mainly manage the Indian economy upon foreign investment which is by nature fragile. This excessive dependence on uncertain foreign investment has created its own complication. If foreign money can come easily it goes also swiftly.  In the wake of US crisis of 2008-09 about 85 billion US $ stimulus package was announced by the Government there. Naturally a part of this also came to India. Now we are informed that the US Federal Reserve has announced the decision to withdraw this stimulus. Naturally as a consequence lot of this money is going out of India creating its own consequences and resultant fall in the rupee further.

However, the larger question is of mismanagement of economy. Any sound economy must depend upon robust domestic investment and savings. These become pillars of strength to sustain the economy. However, the hard fact is that Indians are not investing in India because atmosphere is not conducive. There is corruption, indecision, overwhelming uncertainties and policy paralysis

Except inflation and fiscal deficit all the other parameters of Indian economy from import-export, infrastructure development, manufacturing to industrial development all are down. Indian economy today is in shambles under an economist Prime Minister and there is no hope that in the last year of its existence, the crumbling Congress led UPA Government will be able to retrieve the situation. The only worry is how much damage it causes before its inevitable ouster when ever elections are held. It had benefited initially from the strength of a very sound economy left by the NDA. Subsequently by its own mismanagement and corruption it completely destroyed that heritage

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