5 Ways to Save The "Falling Indian Rupee against Dollar"?

The rupee plunged to a record low of 64.54 against US dollar today. Falling rupee against dollar means depreciation of it's international value. According to reports, the Indian rupee could crash to 70 against the U.S. dollar in a month. What happened is just a wake up call, an expensive one though. Let's see what India need to do in the next ten years to make the Indian rupee strong against the dollar. 

1. Reducing Import of manufactured product

What if we don’t need dollars? You don’t need dollars to buy vegetables at a local store. Likewise we Indians do not need dollars to trade between ourselves. It is only when buying ‘FOREIGN GOODS’ we need dollars. This means, the more we ‘IMPORT’, the more we need to spend our rupee for buying dollar. Goods produced by a foreign company when bought give a boost to the currency of that country against ours. So we must reduce our need to IMPORT things and find Indian alternatives for the products. Buy Indian wherever possible and educate people about the impact of purchasing imported goods.

2. Promote entrepreneurship

If people can start their own business, productivity of the country will increase. The government and society should encourage and appreciate women to work and contribute to GDP. Entrepreneurship creates Jobs, makes the economy self- reliant and reduces Import. This will also help in reducing the current deficit. Government can promote entrepreneurs by reducing the number of laws for different processes. The state of Gujarat is growing very fast because every Gujarati teaches their children to open there own business . 

3. Develop better infrastructure for public transport.

Incentive should be given to the people who reduce their dependence on individual vehicles. Petrol is an imported product that we use on a day to day basis. Public transport will reduce petrol and gas consumption. Imports of automobiles reduce which form one of the major portion, hence again reduce current deficit. 

4. Force black money to return to India

It is important to reduce corruption and plug leaks in tax collection. There is an endless list of laws where the government doesn't take a stand and lean either way. Who will dare to make a long term decision on India in such an environment? If corruption can be eliminated it is possible to attract foreign businesses to invest in India

5 .Boost agricultural sector 

Agriculture which is the major contributor to GDP needs to be improved so that the huge rural region of India can also have a better standard of living. 50% of workforce of India is in agriculture field but we have to even import at times because this sector is not completely utilized.

3 Feedbacks:

Midhun Pk said...

Well written 5 ways...But..The 4th point..!!

Do you think its possible ?????

Anabytes said...

Midhun, it is us the citizens who should make sure that the black money comes back to Indian and we are also responsible to pay taxes on time. A true revolution can make it possible - a revolution not backed by political parties.

Midhun Pk said...

Dear anabytes,

Can u guess, Who invested more black money in UBS and all ??
If you take a top 10 peoples from India, I am literally telling half of peoples from the list are capable to control our Govt, Or they are the decision makers, Like if somebody earning 10000 c annually means, He has to pay a big amount to Indian Govt. Actually political peoples saying its a share of Govt. :) and its very very big amount than annual tax payed by a state.

The banks like UBS and all not ready to share the personal details of bankers at any cost, To make a pressure for an inquiry on this, The force has to go through Indian Govt, Until unless the big bankers are controlling Indian Govt, Nothing will happen dear.

But we can hope for a better situation :)

Go Head..


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