When India opened its doors to welcome multinationals with economic liberalization in 1991, did our policymakers foresee the present crisis? Even as Indian economy displayed an amazing acrobatic act to recover relatively unscathed from the economic turmoil that gripped the globe, it is facing unrelenting drainage by the same MNCs, we invited to our shores.
The multinational companies use local raw materials to manufacture finished goods, which is sold to the gullible public with the help of attractive ads and tempting offers. Even as Indians consume these products, one point forgotten is the huge drain on foreign exchange that this act is evoking. By listening to the crooning of desi superstars, are we ending up damaging our own economy?
The foreign exchange drain is estimated to be in the range of 50,000 crore rupees. This depletion in the Forex reserve ultimately aids in bringing down the value of rupee and helps in boosting the dollar value. This is bound to affect the country’s economy. As the rupee loses value day-by-day, the country is getting poorer and its economic structure is getting weaker.
Even as economy is recovering, unprecedented inflation has taken the sheen out of the commendable achievement. The amazing economic growth is mostly aided by the domestic consumption. The Indian consumer can do a great deal in this scenario. A campaign is gaining momentum to shun MNC products and to embrace local goods.
However, will this help stop the slide of the rupee? The answer is, to some extent it will.
Related posts:
- Indian Rupee Makes Huge Gains With the strengthening of the economy, the Indian Rupee is...
- Indian Rupee in the Current Scenario As the possibility of the gradual withdrawal of economic stimulus...
- The Dance Of The Elephant Being the twelfth largest economy of the world has not...
- India Is Once Again The Land Of Promise The shift of power that everybody has been talking of...
- The Case of the Strengthening Rupee The Indian rupee is witnessing steady value appreciation against the...
Related posts brought to you by Yet Another Related Posts Plugin.
