Last June, the Indian rupee fell so much in front of the U.S. dollar. At
that time , I went to expectations it is likely to stabilize the rupiah
for a short period , at least until the end of the year . But the rupee continued to decline pushing the country towards an economic crisis . This week fell to another record low close of 69 rupees to the dollar .
While all emerging markets affected the strength of the U.S. dollar because of tapers Federal Reserve to buy U.S. bonds , Indian rupee hit more because they are struggling to finance the current account deficit .
In this difficult financial situation , the government responded to a series of actions in the hope of stopping the erosion of the Indian currency . Faqamt to liquidate the country's stock of gold, and headed towards the further step of reducing fuel consumption to reduce the import . And raised customs duties on gold and on the flat-panel TV screens .
And tried to Prime Minister Manmohan Singh , an economist Dali in politics , who played a pivotal role in opening up its economy to the world, to calm markets and large corporations. He admitted that the country is " facing a difficult situation " and said that the Indian economy is affected by domestic and international factors due to changes in the cash position of the United States. He also added that the escalation of tensions in Syria may have negative consequences on oil prices. But the Indian Prime Minister to follow his act because of slow growth experienced by the Indian economy, as well as strict regulations have alienated foreign investors , who pulled their money out of the country due to the deterioration of the economy .
India always was famous as a difficult place to invest because of regulatory obstacles . But their high growth rates over the past few years , which is accompanied by a growth in the middle class , and their savings have attracted foreign companies in a number of sectors.
In the past year or so ago , the Indian growth story has received a blow with the decline in the growth of a two-digit rate to what is currently estimated by five percent . It is now understood that at some stage would object rules through investment . Adding insult to injury , with the survival of less than a year on the elections, the government was forced to take action also populist , which is not always in the interest of the economy . And apparently fumbled the government not to take urgent action when evidence began to indicate an economic downturn . At a time in which it moved to open the sectors of retail , aviation investor confidence has been damaged already .
Now dry enhance its image as a stand on the side of the poor to improve the chances of winning in the general election in 2014 , party government approved the "Conference" a decree to provide cheap food grains to the poor of India . Critics warn that the program faces problems in implementation and Sistnzv of government resources at a time of slowing growth in the country .
The Indian parliament passed a draft law on food security of the long- suspended for expanding existing support programs eight times to the benefit of more than 800 million people at a cost of up to 1.3 trillion rupiah .
The bill ensures five kilograms of grain , including rice, wheat and other grains each month for each person at a fixed rate between three rupees Ropeten , and this is not price only زهيدا , but almost free . The bill also pay a fixed Moreover , if there is no grain.
While considered an important initiative to address the problems of hunger in India, the country in which they live one-third of the world 's poor , critics warned that program سيرهق the State Treasury at a time of slowing growth and rises in the current account deficit . Indian markets collapsed the next day to approve the bill in a reflection of the mood in the market. Apart from this legislation, which was the brainchild of party president "Conference" Sonia Gandhi ruling , which consider the elections, the government has already failed to take any significant action to address the negative mood in the market. Instead of the progress of the Central Bank to monitor the pressure on the rupee in the absence of any other government action .
Oil is India 's largest imports and reduce domestic demand, it may reduce exports to ease pressure on the rupee. Although the government has said it will unveil measures aimed at reducing fuel consumption may be the only way to do this is to reduce subsidies on oil . It is unlikely that the government takes such action general election will be held a year ago . The dilemma to choose between the governments fiscal prudence and populist trends . Evidence indicates clearly that the way in which the government decided to conduct is a populist .
While all emerging markets affected the strength of the U.S. dollar because of tapers Federal Reserve to buy U.S. bonds , Indian rupee hit more because they are struggling to finance the current account deficit .
In this difficult financial situation , the government responded to a series of actions in the hope of stopping the erosion of the Indian currency . Faqamt to liquidate the country's stock of gold, and headed towards the further step of reducing fuel consumption to reduce the import . And raised customs duties on gold and on the flat-panel TV screens .
And tried to Prime Minister Manmohan Singh , an economist Dali in politics , who played a pivotal role in opening up its economy to the world, to calm markets and large corporations. He admitted that the country is " facing a difficult situation " and said that the Indian economy is affected by domestic and international factors due to changes in the cash position of the United States. He also added that the escalation of tensions in Syria may have negative consequences on oil prices. But the Indian Prime Minister to follow his act because of slow growth experienced by the Indian economy, as well as strict regulations have alienated foreign investors , who pulled their money out of the country due to the deterioration of the economy .
India always was famous as a difficult place to invest because of regulatory obstacles . But their high growth rates over the past few years , which is accompanied by a growth in the middle class , and their savings have attracted foreign companies in a number of sectors.
In the past year or so ago , the Indian growth story has received a blow with the decline in the growth of a two-digit rate to what is currently estimated by five percent . It is now understood that at some stage would object rules through investment . Adding insult to injury , with the survival of less than a year on the elections, the government was forced to take action also populist , which is not always in the interest of the economy . And apparently fumbled the government not to take urgent action when evidence began to indicate an economic downturn . At a time in which it moved to open the sectors of retail , aviation investor confidence has been damaged already .
Now dry enhance its image as a stand on the side of the poor to improve the chances of winning in the general election in 2014 , party government approved the "Conference" a decree to provide cheap food grains to the poor of India . Critics warn that the program faces problems in implementation and Sistnzv of government resources at a time of slowing growth in the country .
The Indian parliament passed a draft law on food security of the long- suspended for expanding existing support programs eight times to the benefit of more than 800 million people at a cost of up to 1.3 trillion rupiah .
The bill ensures five kilograms of grain , including rice, wheat and other grains each month for each person at a fixed rate between three rupees Ropeten , and this is not price only زهيدا , but almost free . The bill also pay a fixed Moreover , if there is no grain.
While considered an important initiative to address the problems of hunger in India, the country in which they live one-third of the world 's poor , critics warned that program سيرهق the State Treasury at a time of slowing growth and rises in the current account deficit . Indian markets collapsed the next day to approve the bill in a reflection of the mood in the market. Apart from this legislation, which was the brainchild of party president "Conference" Sonia Gandhi ruling , which consider the elections, the government has already failed to take any significant action to address the negative mood in the market. Instead of the progress of the Central Bank to monitor the pressure on the rupee in the absence of any other government action .
Oil is India 's largest imports and reduce domestic demand, it may reduce exports to ease pressure on the rupee. Although the government has said it will unveil measures aimed at reducing fuel consumption may be the only way to do this is to reduce subsidies on oil . It is unlikely that the government takes such action general election will be held a year ago . The dilemma to choose between the governments fiscal prudence and populist trends . Evidence indicates clearly that the way in which the government decided to conduct is a populist .
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