Failure Financial Policy of UPA. Govt
We have Dr. Manmohan Singh as our P.M. ,who is said to be a great Economist of the world, but still during his regime the price rise is beyond his control inspite of several promises time and again. So it is very clear that the Financial Policy of UPA. Govt. is utter failure, because of the wrong steps taken by them again and again, by raising the rate of interest on all bank loans ,as if they are bent upon to ruin India. They have raised the rate of interest on all bank loans 13 time in 19 months, knowing very well that there is price rise, when ever they raise rate of interest.
We all know that , in Indian market the influence of Black Money and the Money invested by foreign investors is much more in comparison to the money of genuine white money investors. So by raising the rate of interest on bank loans the genuine investors are not able to stand in the market and it a blessing for the money of people like A.Raja, Kalmadi, Hassan Ali etc.
More over if a man of USA or UK invests 100 dollars ( about Rs 5,000 ) in his country, after 5 years he will get a return of 110.4 dollars ( the rate of interest in USA or UK is hardly 2%). But if he invests the same Rs. 5,000 ( 100 dollars) in India he can get Rs. 11,438 in the same 5 years . now the cost of one dollar rises from Rs. 50 to Rs. 103 . now the rupee becomes weak and dollar becomes strong. We import petroleum and pay more and raise the price of petroleum ,which causes price rise in all sectors. In India we have very cheap labour , huge Water Resources, huge raw materials. But all these inputs becomes ineffective due to higher rate of interest and our Rupee becomes weak & weak, dollar goes stronger and price rise can not be checked.
During NDA rule the inflation was very low ,it became even 1% , and we have seen that rupee became stronger ( the cost dollar came down to Rs. 39 from Rs. 48). In 1947 ,when India got freedom , the Value of dollar was Rs. 4 only.
We can not think that a great economist like Dr. Manmohan Singh is not aware of this simple fact , but still his action is just reverse for the reasons best known to him only.
We all know that , in Indian market the influence of Black Money and the Money invested by foreign investors is much more in comparison to the money of genuine white money investors. So by raising the rate of interest on bank loans the genuine investors are not able to stand in the market and it a blessing for the money of people like A.Raja, Kalmadi, Hassan Ali etc.
More over if a man of USA or UK invests 100 dollars ( about Rs 5,000 ) in his country, after 5 years he will get a return of 110.4 dollars ( the rate of interest in USA or UK is hardly 2%). But if he invests the same Rs. 5,000 ( 100 dollars) in India he can get Rs. 11,438 in the same 5 years . now the cost of one dollar rises from Rs. 50 to Rs. 103 . now the rupee becomes weak and dollar becomes strong. We import petroleum and pay more and raise the price of petroleum ,which causes price rise in all sectors. In India we have very cheap labour , huge Water Resources, huge raw materials. But all these inputs becomes ineffective due to higher rate of interest and our Rupee becomes weak & weak, dollar goes stronger and price rise can not be checked.
During NDA rule the inflation was very low ,it became even 1% , and we have seen that rupee became stronger ( the cost dollar came down to Rs. 39 from Rs. 48). In 1947 ,when India got freedom , the Value of dollar was Rs. 4 only.
We can not think that a great economist like Dr. Manmohan Singh is not aware of this simple fact , but still his action is just reverse for the reasons best known to him only.
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