In case the government does not take the right steps now then the country might have to face serious ups and downs, which would be beyond controllable. Honestly speaking, falling rupee looks to be falling UPA.
Presently, India looks to be moving towards serious economic crisis and it looks as if all measures on the part of government are becoming ineffective. The value of India rupee against the dollar is going down continuously. It is having bad impact on import and export and news orders are being held up because of dangling of sword of falling of rupee, which promptly hit its life low of Rs 64.54 to the dollar on 21 August and the rupee shows no signs of halting its slide.
In fact, the Indian rupee has fallen nearly 16% against the US dollar since May and is Asia's worst performing currency so far this year.
A Reuters report also quotes Deutsche Bank as saying that the rupee, though fundamentally undervalued, could touch Rs 70 to the dollar in a month or so, though some revival could be possible by the end of the year.
There are times when nothing seems to go right. When it rains, it pours. For the Congress-led United Progressive Alliance (UPA) government, this is such a time.
A time when growth is sputtering and a slowdown has hit the economy, the rupee has hit its life low against the dollar and the country’s monetary authority, the Reserve Bank of India (RBI), has had to resort to sending out mixed policy signals in a bid to ease the serious liquidity crunch in the system.
Likewise, there is also up and down in the share market and international investors have also withdrawn crores of rupees out of their total investments from the share markets with the result there is highest fall in share market during the last two years. The gold market is also up during the last six months crossing Rs.31000 per 10 gm. In nut-shell, the economy of India is dwindling day by day, for which UPA government is directly responsible without any reason. Because of wrong decisions of the government, the country looks to be in situation of 1991.
The most worrisome and distressing thing is that the government does not seem to be serious on this account and keeping the people of the country in dark and wrong notions. It would have been more appropriate if the white paper on the economic crises could have been released. In fact, there is a need to take big decisions in view of the frequent fall of rupee against dollar.
No doubt, the Prime Minister and Finance Minster of the country admits about the poor revenue conditions but how far it is correct that it is due to international dictatorship in the field of economy. But the situation is definitely going to be worst in the coming days for the common man and it is likely to affect on the business of a small as well as big businessman apart from disturbing the employment in the country especially when there is already too much unemployment. More-over, the elections are coming nearer and its impact on the political circles especially to the UPA is likely to have adverse impact.
It is such a situation when all the political parties sit together to think over its solution. There is a need to take strong steps to stop corruption and evading of tax besides taking action against the political leders and officers who are involved in the economic crimes. They have to be included in the list of causing loss to the economy of the country. In case the government does not take the right steps now then the country might have to face serious ups and downs, which would be beyond controllable. Honestly speaking, falling rupee looks to be falling UPA.