Measures to Save Indian Economy
The contribution by Indian families to foreign exchange reserve is $335 billion. It is
almost equivalent to current fiscal deficit amount. So, the government can aim and focus to
draw more amounts from NRI to save the economy.
Trade deficit reduced the industrial production in India
Current account deficit reduced the domestic production by 0.8% in 2007-08, 1.5% in
2008 – 09, 2.1% in 2009 – 10, 1.4% in 2010 – 11, 2.6% in 2011 -12, 3.9% in 2012 – 13. If we
eliminate this deficit, then domestic industrial production in India would have touched 10.8% in
2007 -08, 8.2% in 2008 -09, 10.7% in 2010 – 11, 8.8% in 2011 – 12, and 8.9% in 2012 – 13.
Gold and crude oil import swallowed the available foreign exchange. Out of total gold
production, 25% to 33% is procured by Indians. Out of total petroleum products requirement
only 25% is produced in India. Remaining 75% had to be imported, which causes financial crisis
every year.
Now it is a disgrace that most of the imported petroleum products are also manufactured
in India. Without any reason they are imported as the government permitted liberal inflow of
foreign goods to India. This affected the total industrial production and revenue.
For the past 9 years, Rs.402 billion worth of gold, silver, diamond etc have been
imported.
At the same time during 9 years $251 billion worth jewels have been exported from
India. After reducing this value the deficit is only $151 billion.
The contribution by Indian families to foreign exchange reserve is $335 billion. It is
almost equivalent to current fiscal deficit amount. So, the government can aim and focus to
draw more amounts from NRI to save the economy.
Trade deficit reduced the industrial production in India
Current account deficit reduced the domestic production by 0.8% in 2007-08, 1.5% in
2008 – 09, 2.1% in 2009 – 10, 1.4% in 2010 – 11, 2.6% in 2011 -12, 3.9% in 2012 – 13. If we
eliminate this deficit, then domestic industrial production in India would have touched 10.8% in
2007 -08, 8.2% in 2008 -09, 10.7% in 2010 – 11, 8.8% in 2011 – 12, and 8.9% in 2012 – 13.
Gold and crude oil import swallowed the available foreign exchange. Out of total gold
production, 25% to 33% is procured by Indians. Out of total petroleum products requirement
only 25% is produced in India. Remaining 75% had to be imported, which causes financial crisis
every year.
Now it is a disgrace that most of the imported petroleum products are also manufactured
in India. Without any reason they are imported as the government permitted liberal inflow of
foreign goods to India. This affected the total industrial production and revenue.
For the past 9 years, Rs.402 billion worth of gold, silver, diamond etc have been
imported.
At the same time during 9 years $251 billion worth jewels have been exported from
India. After reducing this value the deficit is only $151 billion.
