Through this article the author has severely warned the Government
for all its failures on the economic front. The inaction of the
Government to bring out structural changes in the economy to give a
boost to the economic growth has created this inevitable and perhaps
avoidable poor economic condition. The free fall of rupee was in the horizon
for quite some time and being a resourcefully strong economy the Govt
could have taken some harsh decisions on the economic reforms and
implemented. On the contrary the budgets presented till 2013 and
policies pursued only helped the economy to nose dive in all fronts
starting in the flows of foreign exchange in both directions.The dangers
on dependence on foreign funds and that too short term funds are well
known and Indian Economy has sufficient internal resources to be tapped
for developmental needs and as such the inflows of short term funds
could have been either eliminated or discouraged. The dependence of
Capital market on FIIS needs to be completely avoided giving a signal to
the international market that the economy is strong enough to sustain
its market and its liquidity conditions. The article has given a strong
message to the authorities to ponder over the policies so far pursued
and identify the commissions and omissions to set right at the earliest
to avoid major catastrophe.
( This comment appeared in ET is in response to an article on Expect things (read the rupee) to get worse before they get better in ET )
No comments:
Post a Comment