Better than the FM?

This year is really bad for the Indian economy CAD is 4.9% of the GDP and Rupee had a really great fall(greater than Humpty Dumpty) in comparison to the Dollar and other major currencies of the world, it seems that we are back in the 90’s, but where is the magician who waved his wand in 90’s and economy was back on track, probably accompanied with other major tasks like making COAL FILES disappear and baby sitting for the MADAMJI.

But where is out Honourable FM sahab probably be waiting for PM sir to get free from his duties of madamji and give him some notes from the class of the 90’s. These are the great minds of the country they shouldnt be disturbed, let the rupee fall, as I am writing this rupee has crossed 68 and still nothing has been done. On 13th of June FM asked the fellow countrymen to not to buy gold, this made me ponder how not buying of gold will help economy to revive, being a layman to economics(as I studied economics till secondary school only) I tried to understand things.

We Indians have mad craving for gold and why it shouldnt be it helps making your wife shut and thats a good investment. India produces 2.44 metric tonnes of gold every year but county’s annual consumption is whooping 1000 tonnes, so rest of the demand has to be imported, and the payment has to be made in dollars so here comes the simple demand and supply rule, so to buy that much amount of gold the demand of dollar increases in the market and so the price of dollar rises

And the article was not to explain such a simple thing”

Do we need Dollars to buy only gold NO!!!!!!!! The major burden on our Foreign Reserve is dependence on the crude oil. Almost 79% of India’s crude oil requirement have to be imported all of that has to be paid in dollars, and as the country is growing more number of vehicles are coming on the roads they need oil to run on. India’s dependence cannot end and this this plays a major role in Fiscal deficit and this has to be stopped.

So how can we stop dependence on crude oil-

1) Giving subsidies on vehicles which run on alternate sources, subsidies which are being given to the corporates in different forms of tax exemptions. Corporates are given lakhs of crores as subsidies, India’s whole IT industry is running on Tax Exemption and the subsidy given on fuel just amount to only few thousand of Crores.

2)Developing research for alternate medium of transportation and developing great infrastructure for public transportation.

“These are the few basic points more can be added to it

There are many other ways by which economy can be revived but countries economy will only start flourishing the day when our dependence on oil will end.