Falling Rupee: Implications

Yusuf

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Someone with better knowledge please help me understand better but I think the rupee sliding as it has been is going to create more problems in the long run.

One one hand the rupee is falling dramatically which is good for the export, but high inflation takes away from the PPP advantage that we have in dollar terms. Whatever the price of rupee, we will get adjusted to it. If the rupee rises and the inflation remains high, it will make us totally uncompetitive internationally and erode the PPP advantage that we have.

On the other hand, if the rupee stays undervalued, import costs will be high which means our oil import bills will remain high and keep cost of transportation high which will add to inflation.

It's a bloody vicious cycle.

What I have understood is that the falling rupee has not helped India in any way as far as exports go as we have hardly seen a boom in export. On the other hand, we have seen our oil import bill go through the roof an just today I have heard that a Rs. 5 hike on petrol and Rs. 3 on diesel is in the offing. This will increase the cost of food as transport cost will increase.

Problem is, RBI seems to be helpless in pulling back the currency and we may be doomed with an undervalued currency for a very long time. If the 55 mark is breached, we may see the rupee go all the way to 58.

We are looking at some tough times in the economy. sadly nobody seems to have a clue as to what to do about it.
 

Ray

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Pranab Mukherjee may take greater interest in the Finance Ministry now that PA Sangma's name has been proposed for President?

I think I will switch to tinned food since the fluctuation would not be that much in prices since they MRP has been what it was when packed.

I will add to the malnourished statistics, but I would have beaten inflation and poor policy making and implementation!

Petrol prices going up?

Not for me to worry.

I will return to the regimen of practising to walk long distance that I was earlier used to!
 
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Sakal Gharelu Ustad

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One one hand the rupee is falling dramatically which is good for the imports, but high inflation takes away from the PPP advantage that we have in dollar terms.
I think you meant exports in the above line.

On the other hand, if the rupee stays undervalued, import costs will be high which means our oil import bills will remain high and keep cost of transportation high which will add to inflation.
Impact of transportation cost on inflation is overblown in the media. It usually consists of less than 5% in food products and less than 10% in non-food items. There are other serious bottlenecks in the economy responsible for inflation other than oil.

What I have understood is that the falling rupee has not helped India in any way as far as exports go as we have hardly seen a boom in export.
The prices are sticky and orders are usually placed well in advance. So, the impact of current competitiveness if it stays would reflect after minimum 3-4 quarters. Although we will gain in exports in some time, but the huge size of our oil import bill, will more or less flatten the gain.

Problem is, RBI seems to be helpless in pulling back the currency and we may be doomed with an undervalued currency for a very long time. If the 55 mark is breached, we may see the rupee go all the way to 58.

We are looking at some tough times in the economy. sadly nobody seems to have a clue as to what to do about it.
Govt. is sitting on important reforms and that has killed the investor sentiment and lead to an undervalued currency. The recent rulings against telecom operators by Supreme Court and govt. stance against Vodafone-Hutch deal have also sunk confidence. It not RBI, but the govt. that should send out some important messages:

1. Remove subsidy on petrol and deisel as it will lead to control of fiscal deficit.
2. Move forward with GST asap
3. FDI should be opened
4. Sell off AI
5. Send out strong message that past commitments will not be breached(like in case of Vodafone)
 

Mad Indian

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1. Remove subsidy on petrol and deisel as it will lead to control of fiscal deficit.
2. Move forward with GST asap
3. FDI should be opened
4. Sell off AI
5. Send out strong message that past commitments will not be breached(like in case of Vodafone)
How about adding- 1. Remove the bureaucratic headaches in the investments
2. Stop the useless non productive subsidies in general.
3. Raise the Railway fares to make it feasible to run them. and stop all the Populist schemes..
4. Instead invest that money in infrastructure?
 

Daredevil

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Someone with better knowledge please help me understand better but I think the rupee sliding as it has been is going to create more problems in the long run.

One one hand the rupee is falling dramatically which is good for the imports, but high inflation takes away from the PPP advantage that we have in dollar terms.
It should be exports not imports.

As long as our exports are larger than imports i.e. a better trade imbalance in favour of India, falling rupee is a blessing but alas that is not the case. We are importing more than we are exporting and therefore falling rupee is going to pinch our economy badly leading to higher crude oil import bill and increase in fuel prices which in turn raise the transportation costs and this will lead to inflation. And we are pushed in to a vicious cycle from which its very difficult to extricate ourselves unless we turn ourselves around and export more or get more FDI into our growing economy for better infrastructure, roads and education. If we fail in doing any of this, our economy will falter and it will take some time to pickup.
 

Sakal Gharelu Ustad

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How about adding- 1. Remove the bureaucratic headaches in the investments
2. Stop the useless non productive subsidies in general.
3. Raise the Railway fares to make it feasible to run them. and stop all the Populist schemes..
4. Instead invest that money in infrastructure?
Yeah, we need a second generation of reforms. We have taken the growth for granted for the last few years and the results are in front of us.

Recent speech from Raghuram Rajam at one of the debates:
The Next Generation of Reforms in India: Why They are Urgent and What Stands in their Way.

Honourable Prime Minister, my fellow panelists, and distinguished guests:

It is an honor to be here to celebrate the reforms that India undertook in the 1990s, especially the role of the central figure in those reforms, then finance minister and now prime minister, Dr. Manmohan Singh. By reducing controls and increasing competition and entry, those reforms unleashed the latent and suppressed energy of our people.

India has achieved much in the two and a quarter decades since then. There is so much to celebrate, whether it is that we have moved away from the Hindu rate of growth of 3.5 percent or whether it is that so many millions of Indians have moved out of debilitating poverty into a life of some comfort - and yes, despite all the furor over the Planning Commission's poverty line, we have brought down poverty enormously.

Shops are full of goods that we could only dream of buying in 1990, many of them made in India. I can withdraw money from my U.S. bank account today from any ATM nearby (by the way, not incurring the fees I would incur in the US), while a migrant worker can send money using his cell phone to his family's bank account in his village. We can buy air and train tickets on-line, which has eliminated long waits and some corruption in those areas. Organizations like Shankar Netralaya are showing the world how to offer medical care cheaply but effectively. The consumer has never had more choice in India than today.

And even though we lament the deterioration in our old institutions, superb new ones have come up such as the National Stock Exchange or the twenty-four seven TV networks. The latter's competition for news does keep our administrators on their toes even though some in the audience may feel the networks often produce more sound than light.

As Mr Chidambaram and Mr Yashwant Sinha built on Dr. Manmohan Singh's reforms in the years after this book's first edition was published, we enjoyed the strongest period of growth India has ever had. Even our gloom today over the fall in growth to between 6 and 7 percent reflects how far we have come - twenty years ago we would have been elated with such performance.

However, even as the world becomes more competitive, India's star has dimmed in the last few months, as our governance is besmirched by corruption scandals and our macroeconomic health has deteriorated. Alarm bells should sound when domestic industry no longer wants to invest in India, even while eagerly investing abroad.

Why the gloom? The problem, that I am sure is obvious to this audience, is that despite the tremendous success of the first generation of reforms, some of the key next-generation reforms have been stymied. Typically, these are the reforms that reduce rents and patronage, while increasing competition - for example, the bill on foreign entry into higher education, attempts to auction resources transparently, or attempts to transform public sector enterprises into more autonomous corporations. On the other hand, rent, patronage, or entitlement enhancing measures have sailed through. Clearly, there are many exceptions to this asymmetric reform process - the Right to Information Act and the setting up of the Unique ID Authority being important game changers of the right sort -- but I am talking about a central tendency.

For a while, growth papered over the paralysis in growth enhancing reforms, while it made the expansion in subsidies and entitlements seem affordable. With growth slowing, government tax revenues stagnant as a fraction of GDP, and spending high, fiscal deficits remain high. At the same time, private consumption, especially in rural areas, is growing strongly on the back of rising incomes, strong credit growth, and continuing government transfers and subsidies.

The result: The gap between our spending and our saving is making us dependent on short term foreign inflows to a dangerously high extent, at a time that the international investor is increasingly skeptical about the India story.

The depreciating rupee is the first warning sign of an unstable macroeconomy, rising long term interest rates could be the second. Dangerously volatile oil prices could lead to a blowout in our fiscal and current account deficits, while at the same time depressing exchange rates and elevating interest rates. Given geo-political uncertainties, we cannot be complacent.

For a large vibrant economy like India's, there is always hope. We still have tools to tackle our problems. But we must exercise those tools with vigor and a sense of urgency. I know that sense of urgency is shared within the government, but urgency has to translate to persuasion and action. We need a common minimum program across all sensible political parties to ensure that we stabilize the economy and foreign investor perceptions quickly.

If politics and narrow personal advantage trumps economics and national interest, as it has done for the last few years, we will jeopardize the legacy of Dr. Manmohan Singh's reforms that are so well documented in the book.

How have we come to this pass? As an academic, I will offer a possible causal narrative, without any claim that this is tested by evidence. It is, at best, a working hypothesis, but as I will argue, offers a plausible course of action. My hypothesis is as follows: While Dr. Singh's reforms opened up the economy and brought in competition in a number of areas, they were incomplete in four important respects:

First, they left untouched a number of areas such as higher education, where the License Permit Raj continued and significant rent-seeking persisted. Second, they left the public sector occupying the commanding heights, even possessing a virtual monopoly in some areas such as in coal. Third, they did not recognize the importance of national resources such as land, spectrum, and commodities, and left their allocation ill-defined. And fourth, despite undoubted successes, they did not change the public mindset as much as they might have.

All this was to a large extent understandable. One could not do everything at one go, so reforms had to be prioritized. Moreover, the need to undertake some reforms became apparent only after the success of the first set of reforms. For instance, the public hunger for education, and the rents from running capitation fee colleges became obvious only after the dramatic increases in growth and the demand for skilled workers post reform.

Similarly, the patronage from controlling the public sector, as well as the attractiveness of its use for public policy increased rapidly after reforms. Commodities became valuable only after rapid Chinese growth in the last ten years.

And finally, because many reforms were gradual in order to not awake the opposition of vested interests, they were not publicized. But reform by stealth, by its very nature, does not win hearts and minds. Moreover, the significant fruits of that first stage of reforms, and their trickling down to the broader public, occurred with a long lag - often more than a decade after they were enacted. The public could not see the link, nor was it trumpeted. Public mindsets therefore moved only a little, especially in attitudes towards competition and the private sector. I doubt very much that our carpenter attributes his cheap cell phone and his speedy state-of-the-art two-wheeler to the competition brought about by the reforms.

By the early 2000s, India was therefore ripe for a second generation of reforms to cement Dr. Manmohan Singh's legacy. But powerful elements of the political class, which had never been fully convinced about giving up rents from the License Raj in the first place, had by then formed an unholy coalition with aggressive business people, whom I will refer to simply as the connected. What has ensued is coalition adharma, a coalition of the bad. The new post-License Raj equilibrium became the Resource Raj.

The Resource Raj resulted in massive fortunes generated by the connected and by politicians. Again, this is not to take away from committed politicians and genuinely innovative and strong businesses, of which there are myriad examples. Many industries became really competitive and innovative, including ones like telecom that are the focus of investigations today. Dr. Manmohan Singh's reforms documented in this book have made India enormously better off.

But if we want to understand why there is a sense of pessimism today, we have to acknowledge that the full intent of those reforms, to liberalize so as to enhance entry, competition, and efficiency, to move from a producer bias to a consumer bias, and to price and allocate national resources and opportunities fairly, have not been realized in a number of areas of the economy.

The second generation of reforms are ready and packaged in the form of bills waiting to be passed. But these bills, some of them conceived in Mr. Atal Behari Vajpayee's government, are stuck, not just because the government does not have the votes to pass them, but because there is not enough political will, even in the ruling coalition, to move on them.

Finally, what has made the unreformed areas bottlenecks today is that the middle class has grown larger, and it has become more aware, partly because of legislation like the Right to Information Act brought in by the UPA government. Newly assertive institutions such as the press, the CAG, and the judiciary have started uncovering the massive nexus between the oligarchy and the politicians and bureaucrats that built up during the go-go years. Unlike in the past, middle class anger now has tools with which to assert itself even if the middle class is still numerically an electoral minority.

Under this scrutiny, the non-transparent systems to acquire and allocate land, iron ore, and other commodities have ground to a halt, so business and investment in these areas is threatened. I pointed out that we have not established public support for the basic principles of competition and free enterprise. Indeed, distrust of even the legitimate activities of the private sector has grown. Not surprisingly, the utopia promised by the extreme left is once again enjoying a resurgence of popularity. Unfortunately, even necessary new reforms such as the proposed Land Acquisition Bill do not draw fully on the intent of Dr. Manmohan Singh's initial reforms, underemphasizing the need to provide good incentives, and making success overly dependent on government capacity.

This then is the dangerous place we are at. Growth is slowing, in part because of bottlenecks. At the same time, given public dissatisfaction, politicians are even more focused on subsidies and transfers to keep people happy, especially as general elections near. No one wants to be blamed for taking away the goodies, even as our ability to pay for them has plummeted. Politicians are loathe to act quickly to give up their rents, so reforms that might improve sentiment are stuck. And opposition to liberalization is gathering strength amongst the angry middle class - they have become more willing to listen to old discredited remedies once again because their trust in the private sector has been shattered.

But we should not succumb to pessimism. There is no reason that India's growth cannot regain double digits. Simply moving our millions from low productivity agriculture to rural industry or services will give us growth for years to come, provided we are willing to do the minimum necessary to collect the low hanging fruit. That requires completing the second generation of reforms. We need to liberalize sectors like education, retail, and the press, freeing entry and improving customer choice. We need to transform more government owned firms into well-managed publicly owned firms which are free from political influence or government support. And we need to evolve transparent means of pricing and allocating the bountiful natural resources in our country. Clearly, we need to ensure that growth reaches more people. But there is no better way of inclusion than a decent job, no doubt augmented by better public services as well as targeted conditional cash transfers to the poor.

I am hopeful that our increasingly difficult situation will focus political minds.

Given that the public is no longer willing to tolerate the adharmik coalition and the lack of transparency, perhaps politicians will see they have no alternative but to change. Moreover, and perhaps as important, the connected businesspeople are themselves now frustrated with the free-for-all resource grab, and government paralysis. I sense they too want change. When everyone wants change, it just might occur.

In addition to the medium term changes I have just outlined, here are at least three steps that we must take in the short term. They are nothing that the government does not know, but are worth emphasizing.
Raise fuel prices to international levels in a set of quick steps, then completely deregulate them. Announce this as soon as politically possible, and do not roll back.
Resolve the commodity bottleneck in a way that does not give a windfall or bailout to any party, least of all the private promoters, but that ensures these projects/plants can resume production. If necessary, write down the equity of these promoters before restructuring bank liabilities.
Be kinder to foreign investors - they are not the enemy but a necessity -- we need their money to fund our spending to the tune of 4% of GDP. No doubt, however badly we treat them today, they may eventually want to be in India, but crisis are always about timing. We need them now, when India looks increasingly tattered compared to alternative investment opportunities, not five years from now when growth recovers.
We should open up more to FDI where feasible, because FDI is a safer form of financing. We should bring certainty about taxation to foreign investors, and resist the temptation to levy new retrospective claims. If we think Mauritius and Singapore offer undue arbitrage opportunities, and I think they do, we should renegotiate those treaties with prospective effect. Yes, there will be one time adverse effects, but so be it. And finally, we should avoid the tremendous uncertainty created by catch-all measures like GAR, which give tax authorities unbridled power. We should focus instead on clearly delineating specific actions we want to prevent.

I have been very frank - as an academic, that is the only value I bring. The history of development is replete with countries that grew strongly for a while, only to stutter and stop as their leaders and their people started taking growth as their birth-right. Somewhat paradoxically, it is only when we are paranoid about sustaining growth that we will continue achieving it. We need to become paranoid again, as we were in the early 1990s, and perhaps then we will achieve the full promise of Dr. Manmohan Singh's reforms.

Thank you.
Link:ICRIER
 

KS

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Pay more for my tuition fee.
 

addiction

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This is really sorry state of our economy especially when the country is being led by one of renowned economists with proven track record"¦I guess, congress must go, they have become so selfish to remain on the power that they are giving in to almost every pressure tactic of it's allies"¦I must say, this governments lacks the go getter attitude and playing a dirty politics at the cost of our economic growth and national security"¦..
We need amendment in our constitution; if any political party supports other party to form the government, then it must be statutorily obligatory for it to keep its support until the next electoral cycle..
Secondly, lets make the constitutional consolidation of political parties, there should not be more than two parties, it will help us to do away with the mess that coalition system has been creating"¦
But, I don't think anything like this is going to happen in our country"¦.We Indians need change in our mindset"¦
 

Tianshan

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i thought recently there was a move by the indian government to shore up the value of the rupee?

by telling the exporters to convert half their foreign earnings into rupees?
 

trackwhack

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Someone with better knowledge please help me understand better but I think the rupee sliding as it has been is going to create more problems in the long run.

One one hand the rupee is falling dramatically which is good for the export, but high inflation takes away from the PPP advantage that we have in dollar terms. Whatever the price of rupee, we will get adjusted to it. If the rupee rises and the inflation remains high, it will make us totally uncompetitive internationally and erode the PPP advantage that we have.

On the other hand, if the rupee stays undervalued, import costs will be high which means our oil import bills will remain high and keep cost of transportation high which will add to inflation.

It's a bloody vicious cycle.

What I have understood is that the falling rupee has not helped India in any way as far as exports go as we have hardly seen a boom in export. On the other hand, we have seen our oil import bill go through the roof an just today I have heard that a Rs. 5 hike on petrol and Rs. 3 on diesel is in the offing. This will increase the cost of food as transport cost will increase.

Problem is, RBI seems to be helpless in pulling back the currency and we may be doomed with an undervalued currency for a very long time. If the 55 mark is breached, we may see the rupee go all the way to 58.

We are looking at some tough times in the economy. sadly nobody seems to have a clue as to what to do about it.
Unless trade parity is reached nothing will change. FDI buffer is not helping because trade deficit is growing at 3 times the rate of fdi growth.
 

thakur_ritesh

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Rupee slide even today is largely happening because of the eroding investor confidence in the stock market, and the trigger has been the Eurozone crisis and of course, the mess that has been created within by the government.

Its been too rhetorical on highlighting the short comings on part of the government that it is pointless to even highlight them yet again, and as such the government continues to sleep and remain in denial, so what's the point really? The government is more concerned about completing 5 years and respecting the coalition dharma, as our good member Sukhish suggests, so let us have no hopes till 2014 at least.

Other than that, I remain of the view, we need to keep the rupee at 50 to dollar in the long run rather than letting it appreciate in the 40s or further. We need rupee at 50 for at least another two decades but then also need to push manufacturing at a very brisk pace, it is how the much desired industrialization will happen and "Made in India" make a significant mark globally.

I think I will switch to tinned food since the fluctuation would not be that much in prices since they MRP has been what it was when packed.
Sir,

Keep checking the weight of the packed food. They keep the price same but keep reducing the weight. And even in packed products the date of manufacturing, and the price gets altered at various points, even old stuff gets sold as new if the shelf life expiry has happened. There is no guarantee out there, the best of the names in business do it.
 

badguy2000

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a long-term devalue of one currency just show one case....that is :

your economy can not provide enough export to other coutries and foreigners' demand of your currency is less than your demand of foreigners' goods.

That also shows that your economy has less competitiveness than other.

BTW, here my advice:

be strict with FII and attract ore FDI...

too much FII in stock market can not help India much,instead, it usually means too many speculators like soros have arrived in India.
 
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Yusuf

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TR, without having a sound manufacturing based export like China, there is absolutely no use to have a heavily devalued currency. India has had a heavily devalued currency for 20 years but it still does not reflect well on the exports of the country. On the other hand, if we had not devalued so much, we could not have bled so much for our oil imports.

I know there is more to it than just this simple logic. But still, logic says since we are not an export economy, we should have a stronger currency.
 

kickok1975

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A deflation of Indian Rupee could indicate:
"¢ Indian people's purchase power will shrink
"¢ India's nominal GDP will grow slowly
"¢ India's inflation could be worse
"¢ Indian manufactured product will be cheaper
"¢ India could attract more investment and tourist
 

thakur_ritesh

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TR, without having a sound manufacturing based export like China, there is absolutely no use to have a heavily devalued currency. India has had a heavily devalued currency for 20 years but it still does not reflect well on the exports of the country. On the other hand, if we had not devalued so much, we could not have bled so much for our oil imports.

I know there is more to it than just this simple logic. But still, logic says since we are not an export economy, we should have a stronger currency.
Absolutely agree, the government has to be very focused on manufacturing, else devaluation serves no purpose.

a long-term devalue of one currency just show one case....that is :

your economy can not provide enough export to other coutries and foreigners' demand of your currency is less than your demand of foreigners' goods.

That also shows that your economy has less competitiveness than other.

BTW, here my advice:

be strict with FII and attract ore FDI...

too much FII in stock market can not help India much,instead, it usually means too many speculators like soros have arrived in India.

More than FDI, the focus needs to be on efficiency and productivity, and it in that direction that the Indian reforms need to be directed. Not everything needs to be FDI oriented, if we have created certain world beaters, there remain many more to come. Indian private sector has its own aura and potential.

If one is to take a pick between FII and FDI, yes FDI is the preferred route though FIIs have their own role to play who help in valuation of the company which in turn helps in funding of private businesses and not to forget that there is a lot of insider trading that happens where the concerned company owners tend to make a lot of money and reinvest the same in green field projects or expansions or takeovers overseas, lets not forget this year the out bound FDI stands at 72b usd, and some funds do get generated like this, other than that in India it is very important that the retail investor is made a part of the game and potential there remains huge.
 

badguy2000

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A deflation of Indian Rupee could indicate:
"¢ Indian people's purchase power will shrink
"¢ India's nominal GDP will grow slowly
"¢ India's inflation could be worse
"¢ Indian manufactured product will be cheaper
India could attract more investment and tourist
I agree,except the last one,if you mean FDI.

Just as I refered, FII can not help India much. Only FDI can bring meaning jobs to India.

however, FDI needs the support of good infrastructure ,low cost literated labour and efficent Bureaucy.

many countries like Vietnam have better the above 3 factors than India.....

And inland CHina also has much better infrastructures , much more efficent bureaucy and much more skilled literate labout,,although labour cost in inland CHina is much more than India.
And remember that CHina has a much more complete and full industry chains than anywhere in the world..and it is quite important to industry activity.

in a word, in a race to attract FDI, the revials of India are not only countries like Vietnam,but also a huge one called "inland CHina"...

the city where I live is just one of hundreds of cities in inland CHina.

Do you have confidence that india can win a competition against such hundreds of CHinese cities?
http://defenceforumindia.com/forum/general-multimedia/35828-city-i-live.html

BTW, this weekend, I will go to the industry zone of this city,and I will post some pictures there .

Then, you can feel what the rival of India such a race is like .
 
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SajeevJino

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A HUGE DIFFERENCE TO THE INDIAN ECONOMY BY FOLLOWING FEW SIMPLE RULES SET FOR YOURSELF


Please spare a couple of minutes here for the sake of India... ?Here's a small example:- Before 12 months 1 US $ = IND Rs 39 After 12 months, now 1 $ = IND Rs 53.619 Do you think US Economy is booming? No, but Indian Economy is Going Down. Our economy is in your hands... ?

A cold drink that costs only 70 / 80 paisa toproduce, is sold for Rs.9 and a major chunk of profits from these are sent abroad. This is a serious drain on INDIAN economy. ?What you can do about it?

1. Buy only products manufactured by WHOLLY INDIAN COMPANIES.
2. ENROLL as many people as possible for this cause.....

Each individual should become a leader for this awareness. This is the only way to save our country from severe economic crisis. You don't need to give-upyour lifestyle. You just need to choose an alternate product.

All categories of products are available from ?WHOLLY INDIAN COMPANIES.

LIST OF PRODUCTS COLD DRINKS:- DRINK LEMON JUICE, FRESH FRUITJUICES, CHILLED LASSI (SWEET OR SOUR), BUTTER MILK, COCONUT WATER, JAL JEERA, ENERJEE,and MASALA MILK...

INSTEAD OF COCA COLA, PEPSI, LIMCA, MIRINDA,

SPRITE BATHING SOAP:-
USE CINTHOL & OTHER GODREJ BRANDS, SANTOOR, WIPRO SHIKAKAI, MYSORE SANDAL, MARGO, NEEM, EVITA, MEDIMIX, GANGA , NIRMA BATH & CHANDRIKA I

NSTEAD OF

LUX, LIFEBUOY, REXONA, LIRIL, DOVE, PEARS, HAMAM, LESANCY, CAMAY, PALMOLIVE TOOTH

PASTE:-

USE NEEM, BABOOL, PROMISE, VICO VAJRADANTI, PRUDENT, DABUR PRODUCTS, MISWAK

INSTEAD OF

COLGATE, CLOSE UP, PEPSODENT, CIBACA, FORHANS, MENTADENT. TOOTH BRUSH: - USE PRUDENT, AJANTA , PROMISE INSTEAD OF COLGATE, CLOSE UP, PEPSODENT, FORHANS, ORAL-B

SHAVING CREAM:

- USE GODREJ, EMAMI INSTEAD OF PALMOLIVE, OLD SPICE,
GILLETE BLADE:-

USE SUPERMAX, TOPAZ, LAZER, ASHOKA INSTEAD OF SEVEN-O -CLOCK, 365, GILLETTE TALCUM POWDER:-

USE SANTOOR, GOKUL, CINTHOL, WIPRO BABY POWDER, BOROPLUS INSTEAD OF PONDS, OLD SPICE, JOHNSON'S BABY POWDER, SHOWER TO SHOWER MILK POWDER:-

USE INDIANA, AMUL, AMULYA INSTEAD OF ANIKSPRAY, MILKANA, EVERYDAY MILK, MILKMAID. SHAMPOO:-

USE NIRMA, VELVETTE INSTEAD OF HALO, ALL CLEAR, NYLE, SUNSILK, HEAD AND SHOULDERS, PANTENE

MOBILE CONNECTIONS:- USE BSNL, AIRTEL

INSTEAD OF HUTCH

Food Items:- Eat Tandoori chicken, Vada Pav, Idli, Dosa, Puri, Uppuma

INSTEAD OF KFC, MACDONALD'S, PIZZA HUT,

A&W Every INDIAN product you buy makes a bigdifference. It saves INDIA. Let us take a firm decision today. BUY INDIAN TO BE INDIAN...


 

Yusuf

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A HUGE DIFFERENCE TO THE INDIAN ECONOMY BY FOLLOWING FEW SIMPLE RULES SET FOR YOURSELF


Please spare a couple of minutes here for the sake of India... ?Here's a small example:- Before 12 months 1 US $ = IND Rs 39 After 12 months, now 1 $ = IND Rs 53.619 Do you think US Economy is booming? No, but Indian Economy is Going Down. Our economy is in your hands... ?

A cold drink that costs only 70 / 80 paisa toproduce, is sold for Rs.9 and a major chunk of profits from these are sent abroad. This is a serious drain on INDIAN economy. ?What you can do about it?

1. Buy only products manufactured by WHOLLY INDIAN COMPANIES.
2. ENROLL as many people as possible for this cause.....

Each individual should become a leader for this awareness. This is the only way to save our country from severe economic crisis. You don't need to give-upyour lifestyle. You just need to choose an alternate product.

All categories of products are available from ?WHOLLY INDIAN COMPANIES.

LIST OF PRODUCTS COLD DRINKS:- DRINK LEMON JUICE, FRESH FRUITJUICES, CHILLED LASSI (SWEET OR SOUR), BUTTER MILK, COCONUT WATER, JAL JEERA, ENERJEE,and MASALA MILK...

INSTEAD OF COCA COLA, PEPSI, LIMCA, MIRINDA,

SPRITE BATHING SOAP:-
USE CINTHOL & OTHER GODREJ BRANDS, SANTOOR, WIPRO SHIKAKAI, MYSORE SANDAL, MARGO, NEEM, EVITA, MEDIMIX, GANGA , NIRMA BATH & CHANDRIKA I

NSTEAD OF

LUX, LIFEBUOY, REXONA, LIRIL, DOVE, PEARS, HAMAM, LESANCY, CAMAY, PALMOLIVE TOOTH

PASTE:-

USE NEEM, BABOOL, PROMISE, VICO VAJRADANTI, PRUDENT, DABUR PRODUCTS, MISWAK

INSTEAD OF

COLGATE, CLOSE UP, PEPSODENT, CIBACA, FORHANS, MENTADENT. TOOTH BRUSH: - USE PRUDENT, AJANTA , PROMISE INSTEAD OF COLGATE, CLOSE UP, PEPSODENT, FORHANS, ORAL-B

SHAVING CREAM:

- USE GODREJ, EMAMI INSTEAD OF PALMOLIVE, OLD SPICE,
GILLETE BLADE:-

USE SUPERMAX, TOPAZ, LAZER, ASHOKA INSTEAD OF SEVEN-O -CLOCK, 365, GILLETTE TALCUM POWDER:-

USE SANTOOR, GOKUL, CINTHOL, WIPRO BABY POWDER, BOROPLUS INSTEAD OF PONDS, OLD SPICE, JOHNSON'S BABY POWDER, SHOWER TO SHOWER MILK POWDER:-

USE INDIANA, AMUL, AMULYA INSTEAD OF ANIKSPRAY, MILKANA, EVERYDAY MILK, MILKMAID. SHAMPOO:-

USE NIRMA, VELVETTE INSTEAD OF HALO, ALL CLEAR, NYLE, SUNSILK, HEAD AND SHOULDERS, PANTENE

MOBILE CONNECTIONS:- USE BSNL, AIRTEL

INSTEAD OF HUTCH

Food Items:- Eat Tandoori chicken, Vada Pav, Idli, Dosa, Puri, Uppuma

INSTEAD OF KFC, MACDONALD'S, PIZZA HUT,

A&W Every INDIAN product you buy makes a bigdifference. It saves INDIA. Let us take a firm decision today. BUY INDIAN TO BE INDIAN...


Are you a relative of Morarji Desai? Just asking.
 

Galaxy

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Government inability and inaction combined with slowing growth and a widening Current Account deficit has prompted S&P to downgrade India's rating. At the same time the rating for countries like Indonesia and Philippines has been upgraded. Today, we are one of the least preferred emerging market for investors.


In addition, Due to high interest rate, low PAT, High Input cost --> Corporate result are in extremely bad phase. In FY11-13, Almost 30% earnings were lost! Our country is at cross roads today in policy administration and governance.

The sad part is despite commodity correction in last few months, inflation is still high because of the nearly 15% depreciation of the rupee over the last few months.

Therefore, Current Account Deficit is the key --> for that, We need FIIS's inflows --> for that, Investor friendly environment, good governance, better growth, normal interest rate --> If that happens then more inflows, Currency valuation will improve and inflation will decrease!!
 

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