anant_s
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I haven't gone through all the posts in this thread but if i may draw your attention gentlemen (@BHarwana @Nilgiri @Robinhood Pandey ), there is a direct relation of certain imports that decide the state of currency in India atleast.
our problem of purchase of crude and obsession with gold are two of the biggest factors that affect value of INR. Whilst there is little government can do to satiate thirst of gold, several long term steps have been taken to offset this cyclic shocks arising out of oil. First we are going for massive 41000 km of Railway electrification which will cut down diesel bill by atleast 15000 crores (~2 billion) for single customer viz Indian Railways. This work will finish by 2022 with annual targets already being surpassed.
Second, Newer railway lines (most prominently Dedicated Freight corridors) are being worked upon at frantic pace to remove massive amount of trucks from the roads which will again cut down on diesel bill by atleast 2% at current prices.
Third agriculture sector (II biggest oil consumer in India) is being given encouragement for use of electricity as far as possible. This includes investment in clean energy and laying new electricity lines.
It is a bitter truth for all oil importing countries that crude prices will badly impact economies and in recent memory Trump administration's hawkish stance at strengthening Dollar has had a multiplicative effect on currency of several countries, India being one of them. Embargo on Iran and Venezuela haven't helped things either.
But trust me sooner of later countries will device methods and means to reduce this shock and hopefully we will hear lesser such stories.
to summarize as market analysts say, Let Currency find its own feet and ground based on economic conditions, political support is generally ad-hoc and only weakens economy in long run.
our problem of purchase of crude and obsession with gold are two of the biggest factors that affect value of INR. Whilst there is little government can do to satiate thirst of gold, several long term steps have been taken to offset this cyclic shocks arising out of oil. First we are going for massive 41000 km of Railway electrification which will cut down diesel bill by atleast 15000 crores (~2 billion) for single customer viz Indian Railways. This work will finish by 2022 with annual targets already being surpassed.
Second, Newer railway lines (most prominently Dedicated Freight corridors) are being worked upon at frantic pace to remove massive amount of trucks from the roads which will again cut down on diesel bill by atleast 2% at current prices.
Third agriculture sector (II biggest oil consumer in India) is being given encouragement for use of electricity as far as possible. This includes investment in clean energy and laying new electricity lines.
It is a bitter truth for all oil importing countries that crude prices will badly impact economies and in recent memory Trump administration's hawkish stance at strengthening Dollar has had a multiplicative effect on currency of several countries, India being one of them. Embargo on Iran and Venezuela haven't helped things either.
But trust me sooner of later countries will device methods and means to reduce this shock and hopefully we will hear lesser such stories.
to summarize as market analysts say, Let Currency find its own feet and ground based on economic conditions, political support is generally ad-hoc and only weakens economy in long run.
