Preventing Rupee Depreciation

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Money is not an organic creature but it keeps changing within the society and economic
conditions. One rupee in 1947 is not the same one rupee today, both in terms of its
purchasing power and appearance.

As of today, amid a rise in Global oil prices, Geopolitical uncertainty and decline in the
Rupee, fuel prices have witnessed a sharp hike across the country. Rise in crude oil prices
has a direct impact on GDP.
A weak rupee means a good market for exporters and the biggest loser is the consumer.

Following steps may prevent further depreciation of Rupee and to make currency strong:-
1) Govt. should take steps to boost exports intensive sector and develop import substituting
    industries to make India less dependent on Imports.
2) Deregulation of Interest rates on deposits from Non resident Indians.
3) Govt. should sell Forex reserves and buy Rupee as an immediate action to arrest decline
     in Rupee.
4) Curb speculative trading.
5) Making Govt. bonds available to Non- resident investors to increase inflow of Dollars.
6) Relaxing the Norms for FIIs thus reducing CAD.
7) Raise import duty on Gold in order to decrease domestic demand of Gold imports.
8) Govt. should increase limit of FDI in existing as well as other sectors e.g. Aviation,
     Retail, Telecommunication, Radio and Broadcasting.
9) A stable Political and Economic to make India attractive for foreign investors.
10)Provide a Dollar window for oil companies to pay for Imports.
11)Ask exporters to convert Foreign Exchange holding.

The future of Economy depends upon how our Policy makers take action in current
 Global situations.
   
   

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