Sunday, 15 September 2013

Concern over rolling down of Rupee:

Rolling Down

Improves Again

 We have accepted free economy and hence Indians need to accept falling capacity of Indian Rupee while buying goods. Many economists give many reasons for this phenomenon. However none is speaking about responsibility of common citizens and politicians. There are many ways to fight this situation for success. However, mostly politicians and their toons are highly selfish and worried about their own gains even if interest of nation is jeopardized. There is necessity of forcing politicians to work in the interest of nation. They should consider themselves as true servants of nation and not rulers over citizens. If this situation is changed not only the problem about rolling down of rupee but every obstacle faced by every common man shall be over taken. The present situation should be faced with immediate solutions and long term solutions. Immediate solutions could be as follows:-

Gold & Silver
1.       Stopping Gold-Silver, car imports: Gold and silver, especially gold is hardly used by people in India. This is basically used by Indians as investment and jewelry. In both cases Gold finds place in lockers or boxes, meaning not put to any use which develops surpluses in nation’s development. India is spending billions of money in buying gold from other nations. Common man is always worried about safety of gold and silver. Mostly it is stored in safety boxes and does not provide income to holder. There is a positive aspect of investment in the gold. In case of difficulty gold can be sold in market. However, none can claim that this took place in some one’s life. Gold is never sold for any purpose, except in auction. However, a solution for this could be found by constituting Stores/Banks for gold. People may deposit certain amount in Bank. Banks should pay interest on investment. Client of the bank could be allowed to hire ornaments for a specific period on low hire charges. Whatever amount deposited by a client would be treated towards safety of the ornaments given on hire and amount of interest paid for deposit could be the method for recovery of hire charges. In case a bank’s client wants new

ornaments, bank can charge the client suitably. Such an arrangement can educate common man and his/her craving for gold and silver would decrease, some day it would tend to zero.
Import of Crude OIL
Reducing dependence on imported oil: Oil consumes over 70% of foreign exchange India spends. Hence, it is not only important but immediate action is needed to be taken on reduction of imports of crude oil. This is not only practical but easy too. First measure must be reduction in consumption. There are a number of measures suggested by the government. However, same solutions are not applied in government use. The government must implement first and then ask citizens to follow the government. Implementation should start from political leaders followed by private sector and finally common man. Another aspect of this is non use of ethanol available freely from sugarcane. There are many other vegetable plants which could produce oil. Other oils also should be tried but use of ethanol from sugarcane must be made compulsory immediately. If oil refineries are reluctant other solution can easily be found. I can suggest sale of ethanol as a separate commodity on the same petrol pumps. Vehicle owners should be allowed to refill petrol and oil separately. This probably can solve problem of mixing of other ingredients by typical cheaters. It must be remembered that politicians would want to import more and more goods and services. This is highly advantageous to them as no efforts are needed to transfer funds to banks outside India. This may be 1 of the reasons why ethanol is not mixed in petrol.

These 2 steps are immediate solution. These measures can be implemented forthwith. There could be some intermediate measures and permanent (long term) solution. Intermediate measures basically include reduction in imports and enhancing exports in a short time. Long term solution also on same lines but which would need more time. First we consider steps needed for which some time must be allowed. These are:-
Indian Coal
India has coal reserves which may last for another 200 years. It is found that this coal is not suitable for various furnaces and boilers used in India. Treating this coal for use in present furnaces and boiler may be possible. Our scientists, researchers and engineers could find a solution in short time. The solution may be costly but remember this won’t need foreign exchange. Therefore, it shall be acceptable. There is another aspect to this. Research could be on modifications to furnaces and boilers to make those suitable for Indian coal. There is no need to replace boilers of furnaces immediately. This could be implemented as and when these are being replaced in normal course. The replacement could be suitable for using Indian coal.
China Toys may Explode
2.       India imports even minor articles like toys for children. There are many other items for which import could be easily stopped w/o any effect on our life or development. Special attention is needed for imports from China. It is proved over and again that Chinese goods are not only below standard but also dangerous for human beings. There are many mishaps reporting in newspapers about accidents in which children have died. The other aspect is China is using earnings from exports to India for trespassing in Indian area. As a nationalist every individual and trader must impose ban on Chinese goods. On one side a ban should be self imposed and on other side such articles/goods must be produced in India by Indians.
3.       India allows FDI (Foreign Direct Investment). Some rules should be redefined for FDI. Basic need is participation of an Indian in the activities of foreigners in India. This should be on line of Public-Private Participation (PPP). No foreigner should be allowed to start a business unless he/she finds and Indian participant in that business.

Long term steps are needed to ensure that Instead of $ (dollar) controlling exchange rate Rupee (IR) should control exchange rate. Some may think it is an illusion or day dream. However, with nearly unlimited man power available in India, Indians can make miracles easily. The only need is to work hard in proper direction. Present political situation may be gloomy but there are many trying to achieve this goal. They might not have achieved total success but the path they chose shall definitely lead to dream (aim). This being long term achievement it would need time, right direction and efforts without frustration. There is every possibility one may find intermediate goal in sight but not reached. Such situation is most dangerous and needs efforts and support. I have some suggestions for this:-
   1.       Education: For any achievement the shortest route is education. Education means sharing experience. Experience of persons in a particular field prior to entry of some one is start for the second person. This way there is time saving. There is no necessity of trying experiencing and finding out whether a flame burns skin of a person. Some one’s experience is passed from generation to generation and that is accepted. Once a person is well educated for present he/she can try and find some thing superior or cheaper or both. Success of a person depends on his/her education and resources available. There is one misconception prominent in certain class of persons that whatever is seen or available had been known to Indians thousands of years ago. Father some think that Germans and English took Indian Sanskrit books and followed the technique written therein and clam that they have invented the same. Some are ahead of such people. They claim “before Robert brothers took trials of aeroplane so and so did it in Mumbai many years ahead of Robert brothers” I have no idea how this low satisfaction or patting our own back would help us in development.
2.       Education system: We need to develop our education system. We need to find whether we need more institutions to educate all in a proper way? Whether present institutions (meaning working in a way) would deliver results? We have the biggest manpower in terms of numbers. However we don’t have adequate manpower for goals we need to achieve. Research institutions must study the requirement availability and find a solution to make available suitable manpower for all our needs. Even we may think of exporting trained manpower instead of just physical labourers to earn huge foreign exchange. There are many changes needed in our present system.
Research in Every Field
3.       Research: We need fundamental research. We should be able to at least discover. If Germans and British have copied from our ancient books why we can’t follow them and bring out some thing first time during present era. It is not difficult. What we need is continuous efforts. Remember when USA placed restrictions on atomic energy that did affected our space research. However, Indians converted obstacle in to opportunity. Now Indians are in a position to have Indian cryogenic engine. Research should not be limited to certain establishments. It should be in all fields and at all levels. Even in kindergarten we can do research. Even if it is discovery it is useful. Once Indians are research minded Indian Rupee shall be honoured by all, not only on earth but in the universe.
4.       Farmers’ education: It is presumed that farmers do not need any education. Indians consider that if a child does not show progress in education means the child can take care of farming or politics. This is mostly assumed in rural area of India. On ground these professions need much more education and in many fields. A farmer must know all about crops. In addition he/she must know about management, commercial aspect and government schemes. Presently there is no reliable system for this. The government depends on advertisements and government officers and employees make use of ignorant farmers for their selfish motives. Once Ex PM Rajiv Gandhi commented that out of 1 Rupee sanctioned by the government only 15 paisa reach the beneficiary. In order to change this situation the farmers must have ATIs on line of ITIs for industry. Any one can imagine the wonders made by the farmers if full Rupee reaches farmers.
5.       The major enemy of India is corruption. HonourableAnna Hazare and Ram Deo Baba are working on measures to diminish corruption if not demolish it. Easy money is attraction for every Indian. Indian is happy with
1 Vote
currency note of Rs. 500.00. He/She even would vote for a person in judicial custody or undergoing punishment (imprisoned) for years. Politicians have to spend a lot to get elected. One of the BJP Member of Parliament spoke during a public meeting that he had to spend over 80 million rupees for getting elected. Election and corruption is like problem of who is first, egg or hen? To solve this problem propaganda expenditure of a candidate contesting election should be responsibility of the government. Candidates contesting elections cannot complain for the expenditure and they will have no excuse for corruption. This aspect has never been considered. Stress has been on placing limitations on propaganda expenditure by a candidate. Now it is necessary to make it zero.
Assemble Cars in India
Import of big cars is another craving for a few. This is no less than crave for gold. Advantage of car is it cannot be kept hidden. Therefore, the government should treat this differently. The government should charge heavy import duty say twice the cost of the car or more. At the same time a proposal for setting up an assembly plant in India may be given to foreign manufacturers under certain conditions. These conditions should be like this:-
a.       Spare parts imported in India shall have 0% import duty.
b.       During first year the company can import all the parts for assembling car in India.
c.       For assembled cars excise duty and sales Tax shall be payable.
d.       Indian rupee so earned shall be invested in manufacturing spare parts in India with effect from second year.
e.       From second year onwards import of spares shall be reduced by 10% every year till imports become 0%.
f.        Company shall be allowed to export cars w/o any limit.
g.       Company shall set up Training establishment for training Indian employees.
h.       Indians buying such cars shall pay 100% additional road tax every year.
7.      India should give highest priority to discover more and more power resources, use on non conventional energy sources, storage of energy and similar fields.

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