The Indian
rupee, which was at par with the American currency at the time of independence
in 1947, hit a record low of 63.30 against a dollar Monday. This means the
Indian currency has depreciated by more than 63 times against the greenback in
the past 66 years.
Managing
volatility in the currency markets has become a big challenge for the economic
policy makers in the country. The central bank as well as the government has
taken...
Our India, Our Finance, Our Deficit
Monday, 5 August 2013
A large fiscal deficit is an indication that the economy is in trouble and will have reasons to worry. A high fiscal deficit, amongst many, could pose an
inflation risk
minimize the growth of the economy
doubt the government’s abilities
it could affect the country’s sovereign rating, which in turn will limit foreign investors from looking at India as one of the investment hubs.
It is believed that high fiscal deficit...
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