Tag: Indian Economy

Rising rupee is good

Rising rupee is good for India. Vested interests are opposing the rise of the rupee.
Exporters want a week rupee. Exporters have benefited over the years. The cost of dollar went up from 3.36 to 4.76 to 7.50 to 49.09 rupees. At the time importers suffered losses. No attention was paid to them. Now dollar is declining against other currencies. Rupee should be allowed to appreciate. RBI’s policy of pumping rupees to weaken rupee has led to inflation and prices have gone up by 50% within four years. Sliced bread that used to cost Rs.8/- costs Rs.12/-. A packet of half litre milk that used to cost Rs.7.50 costs 11.00. Rupee reached the level of 39.16 rupees per dollar and after that RBI has brought down the value of rupee.
Oil prices are around 100 dollars per barrel. Strong rupee will keep the price rise in check.
BPOs may suffer loss. When they gained when the rupee weakened they profited. At that time they did not ask for strengthening the rupee.
Country is bigger. If some people lose jobs others gain jobs. When exporters lose importers gain and vice versa.
Strange that Left Front wants weak rupee. They are against American domination and yet want dollar to be strong and rupee to be week.
Let RBI stop weakening the rupee.

Indian economy

I read about the booming economy of India. Sensex may have gone up. Salaries of some people may have doubled or trebled. For me it is not a happy situation. Three years have seen rise in prices.

Item 2003 2006
Bread 8.00 10.00
Milk (half litre packet) 7.50 9.00
Bus fare (from EC to Vasai Road Station) 4.00 5.00
Auto fare (from EC to Vasai Road Station) 4.00 6.00
Cable subscription (per month) 200.00 275.00

Similarly prices of fruits and vegetables have gone up with seasonal variations.

My salary has not gone up in proportion to rising prices. When inflation is taken into account the increment at the most just covers up additional amount spent. In these three years my salary increased by 23%.

Transport is difficult. Quadruplication of tracks between Vasai Road and Borivali has not taken place. Quadruplication of tracks between Vasai Road and Virar was over in June 2004. Since then not even quadruplication of tracks between Vasai Road and Naigaum is over. At one time the 8.20 local leaving Vasai Road to Churchgate used to come at 8 o’clock. In March 2006 8.07 local to Borivali was introduced. After that 8.20 local comes after 8.07 local leaves, which is very often later than 8.06, and crowds grow bigger and difficult to get a seat. In the rush people fall. On 14.6.2006 when 8.20 local came the door was closed. I was standing at the platform. Someone fell before me. Another person fell on me. I had a fracture. It resulted in pain, I had to take leave and spend money on medicine. Though the fracture was not healed doctor said I could attend office and I resumed on 11/7/2006. I expect to be fit by 14/9/2006.

Many farmers have committed suicides. Announcing compensation for their families is neither right nor a solution. Suicide is a crime. Crime should not be rewarded. I read or heard somewhere on TV that suicides have increased because families get compensation.

Our country has imported wheat. What happened to 60 millions of foodgrains in godowns which we had some years back? How did such a huge stock disappear?

When sensex crashes there is lot of hue and cry though sensex has nothing to do economy. TV channels and newspapers cover it extensively. The coverage is out of proportion.

Indian economy will boom when prices remain stable, travel is easy. Now the economy of only some Indians booms.