Why Is Rupee Falling Against Dollar — Top 9 Corrective Measures
Rupee is depreciating at such a phenomenal and drastic pace that it is very difficult even the top notch economist to suggest preventive measures.
At the time of Independence 1947, for 1 dollar we needed 1 rupee
During foreign reserve crisis 1991, for 1 dollar we needed 25 rupees.
Due to multiple factors September 2013, for 1 dollar we need 70 rupees (approx).
That is our rupee has depreciated 70 times. This is indeed mindboggling depreciation.
With this amount of depreciation that Indian economy facing very dark days with difficulties looming large from everyday life to big industrial decisions. Even big players are unable to take a decision, as we do not know the value of our currency the next few months it is going to stand. Also, there are no concrete measures in view which can pacify the market. Because even the basic necessity like eatables, fuel, electricity, housing everything is getting costlier, the very survival of the daily wage earners has become very tough. It is not only becoming a monetary challenge for a common man but bringing a very deep psychological distress too because of the uncertainty of future.
Why Is Rupee Falling Against Dollar — Top 9 Corrective Measures
There are multiple reasons behind the falling rupee like policy paralysis, international market instability, corruption, favoring, wrong decisions, and many more but the need of the hour is to take preventive steps. I have mentioning the Top 10 measures.
1. A few years back, I was reading a book that how after the world war restrictions were put on the trade amount of Germany. So to bypass the restriction in monetary terms, Germany started doing barter system. We can also bypass the dollar by resorting to barter system. The only difference is that in modern day, the trade has become more complex but so we have great economist who can certainly devise great ways of doing trade through minimal usage of dollar by preparing barter routes. We can certainly create a panel and entrust upon devising ways of doing business through barter system. This system will absolve our country from depending too heavily on dollar and save the rupee from further depreciating it.
2. All the credit rating agencies are downgrading our country day by day due to its huge current account deficit and at the same time even more fiscal deficit. Both are needed to be checked immediately by putting judicious use of petroleum products and gold which are the two major things we need our dollars for and secondly we should stop any kind of mindless welfare plans which never brings fruits to the society and only lead to further corruption like the newly introduced food bill. Instead we need to check our finances from going down the drain and put more stress on the fiscal deficit. When have money, we need to put it for the most judicious usages like quality education, infrastructure, health, agriculture, potable drinking water, employment, and other long-term goals instead of short term populist measures.
3. Love for country is what made USA or Germany the best in the world. At the time of crisis, they stand together and ward off the crisis when it comes to their national interest. They very rarely try to draw political mileage at the time of crisis. Our country is in crisis, we across all the parties need to stand together and drive the country out of this pathetic economic condition by taking some tough and important decisions instead of cutting each other's throat and pointing fingers to each other.
4. We must check any kind of corruption and losses in the various schemes run by the State which are instead of reaching to the poor people are engulfed in corruption. We all know where the leakages are but only we need to devise ways to plug those whole and let the things reach to the poorest of the poor.
5. We are providing so many perks to the serviceman like tour allowances, fuel allowances and so on. There are times when false bills are reimbursed where no services are availed but the State is charged, this is draining our economy. Stop all such kind of activities by providing severely penalizing like annulment of job or forfeiting all the retirement benefits, etc. If you are dangling carrot, put a stick too.
6. Provide time bound services to the general public and industry, like ration card, driving licence, industry licence, factory licence, import and export permit, and make things transparent and fix the accountability of the concerned department. Make the department head directly responsible for any kind of wrongdoing. This will stop corruption and black money, which will in turn help our economy and so people will certainly feel more secure to invest in a corruption free environment.
7. There is a huge gap between what is paid to the farmer and what the end user pays to the retailer. Are the middleman eating up all the hard work of our farmer and draining the pocket of common man. Devise ways to tilt this balance in the favor of farmers and common man. Raise your spirit above all for the common interest of our country, as farming is not considered a profitable business and more and more farmers are leaving this profession and turning towards city looking out for some other kind of jobs.
8. When we are not having enough dollars, why cannot we put restraints upon ourselves from buying things linked with dollars which are of not absolute necessity and can be purchased later on when the rupee stabilizes more. As a countryman, we all need to put restraints upon ourselves to help the country revive.
9. One of the most respect industrialist, Mr. Ratan Tata, of our country as described in a leading newspaper commented that it is due to the government's lackluster performance and favoritism that why our country lost its confidence in the international market. We need t regain that confidence through different confidence building measures like taking some bold policy decisions by building up consensus through bringing all the concerned parties in a single table and creating a nationalistic fervor instead of political mileage.
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