The continuous sliding of rupees against is nothing new. However, it’s been quite fast since last few years or since BJP came in the rule (2014). In order to make it under control the first step that can be taken is to reduce the import of luxury goods. Not only this, the unnecessary foreign tours of officials and non-officials are also in need to get control. Also with the use of more Indian products this problem can be solved easily.
Well many of us consider this problem as a fractious situation but it is not so. You must be aware of the conversion of black money into US dollar and about the ongoing procedure of massive buying. This should have been expecting to happen earlier and corrective measures initiated and that must have taken place at the right time. In 2019, NDA is throwing a wonderful opportunity to the opposition in order to form the BJP’s government again. So now the point is that why BJP failed at controlling the grand fall of rupees and made it come at its lowest level in last 70 years. Does this tremendous fall of rupees against dollar make Indians break their trust on Modi’s government?
In order to rise up the value of rupees against the dollar, Government needs to take some really wise and sober steps like by creating some really strict bank regulations and making a bigger masala bond market. What is all to keep in mind is to take these steps before the end of the year 2018 so that the situation cannot get as worse as it was a decade ago? Though, the government may able to reduce the current loss for the short term by taking the above mentioned. But when it comes to long-term, BJP’s government must have to adjust the foreign trade and have to control the excess consumption of essential needs such as fuel and salaries by Government Employees, MPs, MLAs.
India needs to migrate to unconventional energy use, changes in public transport facilities are must. The shocking fact is 40 percent roads are covered as parking lots so now the question is that in an upcoming year how we will deal with an additional 2 million vehicles. Finance Minister said the government would restrict the import of non-essential items why he did not disclose the list of non- essential items. One of the important steps is to bring more foreign funds to India. This is the need of the situation that we must control prices through effective methods and that too before the end of 2018. Oil prices are increasing in the world market day by day.
India imports a major portion of the crude oil and therefore the fluctuations in the prices of crude oil in international market play a prominent role in the Indian economy. As per economic survey estimation India’s energy import bill which is around $150 billion, is expected to reach $300 billion by 2030. The economics of oil is very dynamic and therefore both too high and too low prices impact the overall economy. As per the economic survey, rising oil prices will pose a challenge to India’s growth. Higher prices mean higher import bill, therefore, adverse impact on the fiscal deficit and current account deficit. Apart from that high prices will increase the subsidy burden on the government expenditures.
Higher oil prices will increase the import bill, which may have a depreciating effect on the rupee. As high oil prices will increase the transportation cost, subsequently there will be an increase in the price of goods and services. lower prices of crude oil will help in keeping fiscal deficit as well as current account deficit in check.
Niti Aayog said India’s energy demand was likely to soar around three times by 2040, leading to increases in overall primary energy imports. It had also made a case for a single regulator to govern India’s energy market to make ‘India’s economy energy-ready’ by 2040. Modi’s government must evolve a comprehensive national energy security policy. not only government, citizens also have to play the major role by consuming energy properly and use more public transports.
Well, it is time to wait and watch rather than much perturbed all the time about the ever-increasing petroleum product prices. The first thing is to save rupee from further fall against US $. It is indeed a make or a break situation.