Bikash Choudhury
Recent news reports about Balance of Payments (BoP) and
trade deficit must be very disturbing for economic managers and Industry. RBI
has recently announced upward revision of External Commercial Borrowings (ECB-
$40 billion) was an welcome news but insufficient to lift the mood in the
market and inadequate to deal with current volatile economic condition of the
country; in spite of 20 % depreciation in Indian rupee the exports has not
surged and therefore trade deficit has reached 21 billion USD in last quarter,
which is highest in 30 years. Now, it requires a multi prong attack to augment
the inflow of USD, lift exports substantially and import substitution in a
speed that could stabilize the rupee and balance of payments.
Govt. could examine to have an open ended Overseas Indian
Dollar Bonds for Infrastructure, Healthcare and Education with 2/4/6 & 10/15/20 years maturity and with
progressive rewards in terms of interest & bonus which could be traded in
Indian bourses after 6 quarters. This should start a dollar inflow apart from
FDI & FII . Govt. could also use Indian
Diaspora to push Indian products abroad-Be Indian & Buy Indian.
Govt. should encourage private sector to promote Indian
Saris as Brand statement for women in all continents for the rich and super
rich category of fashionable customers to spur the demand for Indian textiles
in those markets where demand is inelastic to growth.
American companies are branding food products like Pizza
& KFC chicken and pick Indian pockets; why can’t Indian Govt. and companies
do the same by exporting the Indian Culture in Toto. Efforts could be made to
export Indian style marriages, Festivals,
Movies, Music and Cuisines in American style of branding and
distribution in prosperous markets of America Europe and Australia
Govt. should reconsider its policies urgently on import
substitution in Defense procurement. India
No comments:
Post a Comment