Indians are Feeling The Euro Heat

Inflation

What I feel is that present depreciation of rupee could be due to Euro-zone effects, which would last for some more time as long as Europe does not come out of the grip of its present economic crisis. Reserve bank can hold the situation up to a certain extent and after that; it may only boomerang on itself.

There is no doubt that problem is getting worse as inflation is rising by the hour but the main reasons reason behind are our bad policies, careless bureaucracy and worst politicians. They are selling out our country for their self-interests and making bad policies for the sake of creating their own vote-banks.

The politicians are doing all out efforts to suppress whatever efforts social workers are trying to bring back system on the track. The present lot of politicians are least bothered about people of this country but looking for their own selfish designs. They are leaving no opportunity to make money from whatever transactions they are doing.

Then there is matter of higher import taxes, and there is one more point worth mentioning here that higher import tax only helps small industry in our country because most of the industry here use homemade raw material. Higher import tax affects either bigger industry or the ones who are importing in bulk for retarding in India.

For the time being, we have one big problem on our hands and that is mainly to keep oil prices under check. Oil price is the only weak link that can influence the economy as this has an impact on every consumer item.   

I agree here on the point that this is universal crisis, which we are facing today but this was already there in US for quite some time but we had learned to encounter it. Now this Euro zone problem is some thing new for us besides our own policies are making things worst for us and our leaders and officials concerned. Although they know how to tackle these, but are too slow to do any thing in time bound manner.

G-20 Leaders – Caricatures (September 2011) (Photo credit: DonkeyHotey)