Almost 20% of devaluation of rupee in a month has literally triggered panic button in the business & industry circles, which is obviously to be followed by instant rise in inflation and shortage of funds plunging economy further down.
J. P. Sharma, President of Vidarbha Taxpayers Association (VTA) discussing this issue said that in all decisions taken by Government and RBI in last 3-4 years had caused rise in inflation. Country’s economy is strongly represented by its industrial growth, which in our case has been dropping drastically in last 3-4 years and on the contrary import of petroleum products has increased by almost 70-80%, resulting rupee devaluation of almost by 35%.
Sharma said government is misleading nation by submitting argument that due to global slow down, India too is suffering. All decisions taken by government in 3-4 years clearly reflects political advantage, however are causing irreparable loss to the country’s economy and rupee devaluation. Government had assured that with relaxations in FDI inflation would be curbed, however this didn’t produced expected results. RBI’s various attempts in last 3-4 years by changing repo, reverse repo and CRR rates also failed to deliver desired outcome. Government is totally focused on 2014 which is election year and has miserably failed to take care of nation’s economy.
Tejinder Singh Renu, secretary of VTA said that taxpayers’ hard earned money is being spent by the government on policies which will help the present government in coming year’s elections. Schemes like MNREGA, Food Security, unwarranted subsidies, etc are non productive schemes, rather they are making population lethargic and instead of such schemes which will make people idle, government should have introduced larger national projects like interconnecting rivers and similar.
Renu said such non-productive schemes will cost additional burden of Rs.4,00,000 Crores on national exchequer and this is known worldwide, due to which foreign investments and other projects are avoiding India for their proposed projects.
125 Crore people are heavily burdened with inflation, wherein even managing vegetables for two times meal in a day has become difficult for common man and under such circumstances VTA appeals to the Government to resist focusing entirely on advantage vote policies and concentrate more on nation building, stable rupee as well as economy.