Value of the Indian currency(Rupee) is spiraling downwards. It is 59.98 against the dollar. This has never happened before, it had never depreciated to this low level before. Rupee has become this weak because of the current account deficit. Last year the current account deficit was 5% of GDP last year. Rupee will further get devalued when the foreign investors who are expected to pull out their funds from India. They believe that developed economies can give good results while the emerging markets will be unsteady. Excess government spending on badly conceived policies has resulted in lesser development. Better development would have fuelled growth of the economy.Emerging markets have big problems of their own. Still there are foreign firms which do well in India like those selling mutual funds. Investment patterns of the affluent class is very attractive for foreign financial firms. Banking services for non-resident Indian is another great potential for foreign financial firms.Better technology of developed nations can give better results that manpower depended developing nations. And that is the emerging truth which we must learn from. Infrastructures must be made very fast.Manufacturing sector must be developed.Financial reforms can steer us out of this crisis.We must start exporting more and more.We will stop the free fall of the Rupee as early as possible.
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