Removing the Haze
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India’s widening current account deficit (CAD) over 4.8%
& dangerous fall of rupee (from 44/- to over 61/-) are concerns for all
& being analyzed & written about daily in newspapers, magazines &
discussed on TV by economists, experts, columnists & journalists, but I am
sorry to say all of them are saying the same things (points), which most people
(public) know, the causes for the two as experts are saying : reduction in
exports, increase in imports, huge oil import bill, import of gold, reduction
in inflow of foreign capital, US economic recovery, etc.
The RBI has warned in its “Financial Stability Report”
recently, that macro-economic risks Indian economy facing, is on the increase
& a high CAD is a worrying sign for an economy that is slowing down.
Many people are advising that to overcome CAD & Rupee
problems, the RBI should issue foreign currency bonds & give them to oil
Cos to use them in place of dollars to buy oil, but they forget that falling
rupee may render them to “junk status” by rating agencies (already India ’s
rating faced “junk status threat” 4 months back).
But real reasons for Indian economic fall are:-
India has frittered away all its money in absolutely unproductive
& corrupt Panchayti Raj schemes & MANREGA schemes (both Panchayti Raj
& MANREGA have how badly failed & how big loots happened, numerous
reports have already revealed & TV programs exhibited), rather than
investing in Infra, Railways, Roads, Airports, Agriculture & Industry,
these things are tangible & can be seen, also hugely labour intensive,
therefore give huge employment to all, mainly to rural people (over 80% of
employment generated for them, also permanent employment) & great thing is
that these things build the country. And also pulls in foreign investments. (That is what, not coming today & India sliding)
We have utterly failed in this.
I will not blame two UPA Govts for this, even if Indian
economy in such a dire state, as this writing is not political or to criticize,
but to analyze & clear the dusts economists & experts are failing to
see though.
