Hot: Sinking Ruppees
Over the past two weeks, India has been witnessing a major downfall of Indian rupee against the US dollar. Oil and petrol prices have been rising, food inflation continues to rise. But this is not something that happened in a fortnight. What are the reasons that resulted in the fall of rupee? Why didn’t the government and the economists foresee this sudden depreciation in the rupee value? Why are the government and the RBI not able to bring about the efficient measures to tackle the downfall? All these have been lingering in the common man’s mind for quite some time now, but unfortunately, our Prime Minister and Finance Minister have failed to give satisfying answers that can reassure the people that being patient would actually better the situation.
Much of the weakening of rupee is attributed to the negativity in the market. The various steps taken by the government and RBI to promote development, increasing the FDI limits and purchasing governments bonds seem to have little or no effect on the market confidence. Foreign investors seem reluctant to invest in India due to its well known red-tape delays and corruption. Add to that the declining growth rate for past couple of years and the increase in imports, it is a surprise that many people are shocked at the inevitable decline of rupee.