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Updated: August 30, 2013 03:08 IST
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Experts weigh in with their suggestions on rescuing the Indian economy

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Experts weigh in with their suggestions on what measures the government must take to rescue the Indian economy from its current state of turmoil and disarray as reflected by the falling value of the rupee and growing current account deficit

Articles published on August 30, 2013:

1. Reduce subsidies

2. Use currency reserves

3. Stabilise the rupee

4. Growth is key

5. Push reforms as in1991

6. Reduce unnecessary imports

7. Focus on manufacturing sector

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More In: Comment | Opinion

Government should stop the import of Gold. Peoples should utilize the
natural things present in our country.

from:  Athirajan
Posted on: Aug 31, 2013 at 16:01 IST

When the experts are discussing about how to increase the value of
Rupee against Dollar, one man is missing who is very prominent in his
field...The Ambani Brothers...they are missing...For their business
they pressurise twist and tweak, cut through the loop holes of indian
investment and taxes laws. What i was shocked about the silence of the
Wizard of indian economy from investors side. No matter what happens
to Rupees, Reliance business kingdom prospers. This
lack of visionary of national spirit is tha cause of the Fall of
Indian Rupee.

from:  PV Sujith
Posted on: Aug 31, 2013 at 05:53 IST

India is not in dearth of "Paper experts".Now a new breed of
'arrogant experts"clamour around saying that with 5Rs/10Rs one can easily live-off.They are from very planning commission.The fact is we are all bogeys/phonies.To put it bluntly we are such people we've
no nerve/brain even to cater a user-friendly forms in all ministries /depts.despite a massive ARC not to speak of economic reforms.
We are for ever destined to be third rate nation of scoundrels.

from:  ramachandrasekaran
Posted on: Aug 30, 2013 at 16:34 IST

I have a simple suggestion for arresting the rupee slide. Government should pass an immediae ordinance, wherein all IT Tax payers have to give 2 sovering gold each for which the Government will give a equivalent Value Bond that can be redeemed later. In this process assuming that there are 1 crore tax payers we will be getting : 10000000*16gm = 160000000/1000 = 160000 kgs of Gold as reserve

from:  brahamanapalle
Posted on: Aug 30, 2013 at 13:58 IST

Encourage NRIs by giving tax free investment in properties and other
small scale industries. Discourage import of gold. Encourage the
production of vehicles with alternative fuel. Single window clearance
for FDIs not only by big industries and supermarkets but even small
scale industries. Encourage NRIs to buy Farm Land in India and land for
storage purposes like big godowns, cold storages etc. With this small
FDI will also will come and our economic needs will also be fulfilled.

from:  Ravi
Posted on: Aug 30, 2013 at 13:32 IST

Most of them already covered, however other measures which could be undertaken, will certainly have impact on long term would be 1) Make mandatory for two child norms across the board & country 2) Propagate better public transport system with superior facilities to minimize diesel consumption 3) Better connectivity of goods trains & rail connectivity to industrial towns and cities to lower the less efficient long travel road transport system 4) Incentive patents and R & D facilities in industrial & academic spheres for technology based research 5)Promote sophisticate technology based industries ( as we have enough manufacturers and competition in low end technology products ) As already started by GOI start making policies and negotiations in INR for major purchase and internationalize the local INR currency 6) All the projects and products including hydrocarbons of Indian origin be traded only in INR 7) INR to be currency for all international projects being executed in India 8) Make policy to internationalize the top contracting and manufacturing companies to earn revenues of other currencies I,e to make space and promote export oriented economy

from:  Mukesh
Posted on: Aug 30, 2013 at 12:19 IST

Ms Jayati Ghosh's recommendations are amusing: food security bill allows people to
spend on other goods. Does the food sold as subsidised prices magically appear?
The government will incur the expenditure; so even at the margin if there are private
savings it is offset by increased public spending. This is followed her saying that if
private investments are low, the government needs to step in!

The government needs to inspire confidence in the economy. It is failing to do so
miserably.

from:  azad bali
Posted on: Aug 30, 2013 at 12:19 IST

Economists, policy planners, industry, media,political ideologists and vested groups are viewing the present fall in rupee value in their point of view forgetting the vastness of this subcontinent, its relation with other economies, internal political compulsions and comming 2014 lokh sabha elections.The lower middle class is the worst sufferers.Rural mass is unheard in this fight for survival.At micro-economic level in households purchasing power has to be accelerated and unwanted expenditure curtained.At Government level-civil,judiciary,executive, defense, R and D,public sector concerns- the nonplan expenditure needs to be curtailed.Accountability to service to people needs to be enforced.A citizen expects minimum level of security to life and property.Corruption which affects the poor needs to be squarely handled.Indian farmer is very good in production but inefficient in marketing.Indias natural resources-water,energy,mineral ores etc-are the best in the world.Tamil Nadu is a model

from:  K V Peter
Posted on: Aug 30, 2013 at 12:13 IST

Rejoice!! With the fall of the Rupee, imported nuclear power plants would become so much MORE expensive over and above their already prohibitive cost, that various projects in which purchase of these foreign-made plants had already been promised in return for the Civil Nuclear Deal, are likely to get stalled. No more nuclear power plants to be built in India for some time to come, excepting for those indigenous PHWRs and FBRs, construction of which have already begun. In the meanwhile, GOI/DAE should expedite all the R&D required -- much of which may already be on hand - to make use of indigenous Uranium and Thorium in India-made plants to generate electric power.

from:  Udhishtir
Posted on: Aug 30, 2013 at 11:10 IST

Here are more solutions: Revert to the barter system locally. Let
localised economy thrive. We could even think of alternate currency for
people who personally don't use any of the imported stuff (plastic from
China, oil from middle east, gold from elsewhere....)
By the way... it may be possible for these opinion givers to think
differently if they were to dress local perhaps?
Stop importing plastic goods and gold. Reduce use of oil and encourage
small local solutions.

from:  swarna
Posted on: Aug 30, 2013 at 10:13 IST

Here are few more suggestions:Impose tax on spending by individuals and groups. Offer incentives to bring in hoarded money from abroad.Allow remittances from NRIs only in USD.Impose a tax of 90% on all personal incomes above one million.Scrap all subsidies and freebees, let every one - physically fit work and earn for their living.Provide economical support to uplift the deserving section of the population without any bias-caste, religion etc;

from:  V.Sivasubramaniam
Posted on: Aug 30, 2013 at 07:12 IST

reduce subsidies
seccond reduce un necessary imports esp GOLD and to an extend petrolium
products to a limited period till rupee recovers

from:  narayanan nair
Posted on: Aug 30, 2013 at 03:30 IST

I will like to say that the total approach to strengthen rupee should be based on four pillars, a)Focus on Manufacturing, b)Channelising the FDI correctly, at least part of it, c)Control domestic causes of inflation, d) Force ethical practices on Political and Beaurucratic mass bringing confidence in Governance.
FDI must bring an ethical commitment in not exiting at drop of hat.
The injection of ethics in Governance has morally become an important act in today's India which is being known only for corruption. Governance not only to do, but also appear to stand upright and beyond corrupt practices.
I do not agree to increase iron ore export or harness coal stocks as these are depletable resources and where possible, it is better to preserve the same. But we should stop unnessary imports, and look for imports in Rupee as oil from Iran, or going back to rupee swap with Russia and many other countries in Africa and use strong diplomatic lobbying for that
Manufacturing sector is still lagging at around 16% of GDP which should have crossed 30% in the past 66 years of independence. A big chunk of Manufacturing zones, specially in small and medium sector had been forced to close down due to several local, governmental and personal factors. Local factor include unsympathetic cadre based politics, lack of cost effective energy, road and other infrastructure; Governmental include Red tape processes and blind laws. The Governments should see that local and Governmental forces should not force industrial zones to vanish. FDI should be channelised more in start up and less in just stock market. Mere entry in takeovers lack commitment.

from:  Anup Mukherjee
Posted on: Aug 30, 2013 at 03:13 IST
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