Falling Rupee vs. Sonia’s Food Bill

For Sonia Gandhi, Food Security Bill is important as a means to win the forthcoming general election even after all scams of her government and not the unprecedented falling rupee deteriorating the image of India in the domestic market and that abroad.

And the brilliant leaders of opposition doesn’t budge from their demand that the PM should come and talk on missing files of Coalgate, when they would have demanded PM to come and make a statement on his plans for facing the serious financial crisis or resign or call election. How can the Indian politicians be so immune to the crisis? India is no where today in the game plans of the foreign investors with deep pockets.

Since July 15, when the government appeared to wake up and started taking measures, the Indian Rupee currency has depreciated 5.40 per cent, falling from Rs.59.89 to Rs.63.13 to the dollar. Is it not a crisis? And even this depreciation of Rupee has not meant a sustainable boost to exports.

The current account deficit (CAD) is not so much to do with monetary policy as with prolonged neglect of the real sector of the economy such one by failed to create a conducive environment for investment in manufacturing.

Domestic manufacturing and agriculture are the only activities that can sustain the growth of the country with so huge a population to consume.

How can the revenue collected from the tax payers be wasted in unproductive way in name of redistribution through doles? How can those making and running the policy formulations keep themselves happy in a country that they have created with sixty six percent poor class requiring a support such as food bill after sixty seven years of independence ?

Why should our exports not exceed imports? Except for crude oil, India can be self-sufficient in production of coal, if mines are managed well, and farmers are technically supported and encouraged for producing the vegetable oils and pulses. Why the government is failing to do that. What can be the logics of exporting cotton and iron ores or importing of apples and exotic fruits and vegetables or toys and electronics? Why should all nonessential items, for examples, Lakshmi and Ganesh and fancy decorative lightings be freely allowed to be imported from China and other countries? Why can’t the government machinery be proactive rather than reactionary? How depressing it is to hear of the man-made poor state of affairs of Indian economy for any nationalist?

For a person of my background and many like me, it is really worrying. We thought the money from the sale of the inherited properties and our savings from the forty years of good enough professional career after the IIT qualification would be sufficient to gift some for the higher education of our grandchildren.But perhaps with the highly inflationary economy and weak Rupee, it will just be a dream. I still remember that in 1966, when I went to UK first time, I took 500 dollars from an American friend of mine who was working with me and paid him Rs 2500 at the rate of Rs five for a dollar. Today, it is around Rs. 64 a dollar.

It is interesting that with top class brains of Manmohan Singh, Montek Singh, P Chidambaram, the economy of the country has gone to this level. Are their stakes no higher in it than that of Sonia Gandhi? How long the country will have to bear with a third grade mind in the most powerful position of the country, just because she is wife of a grandson of Jawaharlal Nehru?

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